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In the last 5 years, has the value of the German currency declined or risen?
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- Germany does not have an independent currency; it uses the Euro which is shared by 20 other Euro zone members.
- The economy of Germany is closely tied to those of other European Union member states.
- Currency fluctuations do not necessarily reflect economic loss or gain
As is true for considering French currnecy, here are a few things you have to consider when answering this question:
As i applicable to any European Union country, over the last 5 years the value of the Euro has fluctuated, from a high of $1.6/Euro on January 2009 to a low of $1.3/Euro as of January 2013. In between these times, there have been significant currency fluctuations, going both up and down.
In this case, the drop in the value of the Euro has coincided with a debt crisis in the Euro-zone. However the German economy unlike other European economies has managed to weather the economic storm. They have experienced relatively low unemployment, a steady growth rate and increased exports. This has been due largely to a sound fiscal policy and efficient budgetary policies.
Posted by farouk23 on April 16, 2013 at 8:38 PM (Answer #1)
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