08-15-2015, 12:07 AM
(08-14-2015, 10:26 PM)Benton Wrote: And that's the problem with the euro. Germany and Greece weren't anywhere close in terms of economy, but since they're using the same currency, they have to be competitive. They can't.
What would happen if Mexico suddenly switched to the US dollar? They don't have any trickle up policies, they aren't known for their strong social programs. But moving to a more rigid and stronger foreign currency would leave them unable to keep up with growth.
This doesn't make any sense.
If currency is free-floating, the value of that currency is not determined by government.
It is determined by supply and demand, markets and banks throughout the globe.
Mexico switching to the US Dollar tomorrow would have no effect whatsoever on their GDP, debt to GDP, or spending.
