Comment by thiago_fm | Hacker News Reader

Comment by thiago_fm | Hacker News Reader

Parent Full thread

This is great for German exports. Expect to see more Mercedes Benz in the streets of America.

It generates some inflation as imports are pegged to the dollar(somebody mentioned that it is hedged, it is just by some extent), but overall is actually good for the economic block. The EU needs to export to survive.

The EU has been fighting a possible deflation for most of the 2010s, this is actually not so negative as people might think.

If ECB would raise interest to the same rate as the FED, Euro would become too strong. Inflation is already decreasing in Germany even with that 0% interest rate.

The main inflation concern is the gas prices for this winter and this isn't fixable with monetary policy. If we have no gas, no amount of money will be able to buy it.

This thesis only holds if MB can afford to keep running its factories. Modern economies cease to function without energy, or when the price of that energy is sufficiently high.

Could you link a source regarding inflation decreasing in Germany? Only days ago German central bank chief Joachim Nagel said it will soon breach 10%.

>This is great for German exports. Expect to see more Mercedes Benz in the streets of America.

A lot of MB sold in the UK are made in Mexico.

Import/export is really about money flow though, it's not (directly) that important where the goods are made or end up.

Not to mention US tourism to Europe will increase I bet.

IMHO, it will still be a while until it grows back to pre-COVID levels.

Currency devaluation is basically demanding that workers do more for less. That's great for companies, if those workers accept it and don't jump ship. However some of the brightest Germans I know are in the process of emigrating. They are tired of lockdowns and inflation and everything.

Emigrate, but where? I hear discontent from people from several countries but it's not clear there is any place to go where it is universally "better". Some places are better for some aspects, some places are better for other aspects; but like a short blanket, you pull one end and it uncovers the other end.

Reply on news.ycombinator.com