Euro Quote by Milton Friedman
“Germany's problem, in part, is that it went into the euro at the wrong exchange rate that overvalued the deutsche mark.”
About This Quote
Source Speech: Economic Commentary, Milton Friedman, 1995
Adopting the euro at an unfavorable rate harmed Germany by overvaluing its currency, affecting competitiveness.
In simple terms: Wrong exchange rate hurt Germany's economy.
Beware of exchange rate impacts.
Themes
Mood
Type
When to use this quote
- trade negotiations
- budget planning
- investment decisions
- policy analysis
Key Concepts
Questions to Reflect On
- What alternative policies could have mitigated the impact?
- How do exchange rates affect national competitiveness?
Fixed exchange rates can limit flexibility and cause imbalances.