291–300 of 340 posts
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That currency has a fixed exchange rate to the euro. Any perceived sovereignty benefits are fictitious.
The biggest sovereignty benefit is that it can stop following fixed exchange rate if necessary, what is much easier than moving away from euro.
Credit where credit is due: the EU gets a lot of flack for being bureaucratic, hidebound, sclerotic, whatever, but the single currency has been a success and it's still expanding, 26 years after its creation. Also, the addition of Bulgaria means it's almost possible to travel from Spain to Greece entirely through the Eurozone, with only a thin sliver of Serbia or Macedonia in the way. (Assuming we include Montenegro…
Polish here, very much against adopting the euro until our standard of living and growth rate matches Germany (no at least not for next 10 years). Why? Because the disadvantages far out weight the benefits for developing countries. The biggest issue is giving up one of the biggest instrument of control over the economy to a supra-national non-democratic organisation. Surely the monetary policy will follow what is bes…
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Being able to buy groceries with euros is not a strong, or even related, argument to the point you're making. Even ignoring the real economic cost of having two currencies, there is no serious economist that would argue Poland joining the EUR zone is negative for Poland (as opposed to for stronger EU economies). Every single historic metric points in the other direction. Poland's economy is maturing and strengthening…
Also, not for nothing but the Polish economy is mostly doing as well as it does because of the metric ton of EU subsidies injected into it the past decades. That's one part of it. The other part is that the country had just as much human capital and economic potential as Western European states, but was held back artificially by the Partitions, WW2, the Soviet Union, and the lack of Marshall Plan investment that West…
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If being nationalistic means preferring that currency in your country is controlled by the government you have elected and not by ECB that you have zero control over, then yes. Ask Greeks how much they enjoyed ECB involvement.
The Danish krone is pegged to the euro, meaning it's already effectively controlled by the ECB.
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Also, not for nothing but the Polish economy is mostly doing as well as it does because of the metric ton of EU subsidies injected into it the past decades. That's one part of it. The other part is that the country had just as much human capital and economic potential as Western European states, but was held back artificially by the Partitions, WW2, the Soviet Union, and the lack of Marshall Plan investment that West…
Well, it's a fact, not a narrative. I think the actual debate is whether or not boosting economies of countries in the EU that for one reason or another were or are behind on the curve is a net win. I think it is. Just as it is perfectly justified for other countries to feel a bit hard done by if that same country after an estimates 280 billion euro injection is still rejecting the shared currency of that body.
https://en.wikipedia.org/wiki/Polish_material_losses_during_...
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You have to be careful to make a distinction being in the EU and using the Euro as your currency. You can benefit from the EU common market, with its uniform rules/standards, easy capital flows, subsidies, and industrial policy. All without using the Euro as your currency, and being subject to the monetary policy of the ECB. Being in the EU without using the Euro has been pretty good for Poland.
> Being in the EU without using the Euro has been pretty good for Poland. That's an interesting perspective. From what I see in the news, the EU isn't as happy with the outcome.
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Polish here, very much against adopting the euro until our standard of living and growth rate matches Germany (no at least not for next 10 years). Why? Because the disadvantages far out weight the benefits for developing countries. The biggest issue is giving up one of the biggest instrument of control over the economy to a supra-national non-democratic organisation. Surely the monetary policy will follow what is bes…
Controlling currency is one of the most important aspects of being a sovereign country. Poland should adopt euro not sooner than Denmark and Sweden.
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What choice did Greece have? Germany was not extending favorable terms, they were punitive, so what choice did they have but take the least awful choice? Syriza tried but Germany had the upper hand and of course didn't give an inch --though Syriza tried very hard. Varoufakis would argue the severe terms imposed by the creditors/negotiators exacerbated the fiscal issue. Yes Greece had issues but the creditors's terms…
Greece underreported its debt until 2009: i.e. it borrowed too much while lying about how much it's already borrowed. That's the main difference between Greece on the one hand and Italy, Portugal on the other, in my eyes. Italy and Portugal too suffered a public debt crises, but they weren't so blatant about it. I sympathize with the common Greek man, and I wish their crises had been managed with more success, but I…