The accusation by US policymakers that Germany’s currency is “grossly undervalued” is partly justified. Indeed, while the euro’s current low level seems warranted by economic fundamentals in the region as a whole, we have long argued that Germany should undergo an internal revaluation to promote rebalancing within the single currency area. But this still seems very unlikely to happen.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.