Question

Think about the economic impacts of EURO. What do you propose to resolve the European Debt Crisis?  

Answer 1

The introduction of Euro is implied the beginning of new era for economic policy making in Europe, with a new environments calling fro the new arrangements for economic policy coordination. In 2005, survey of mostly central banks, most of the respondents said that they intended further diversification from dollar and even some central banks announced this statements to general public of their countries. As Euro is frowing faster in terms of GDP and trade openness. European central banks has generally kept inflation in check. So generally, Europe experiences nothing like America's current account deficit etc, which generally pressures on the dollar.

There are various ways to resolve Euopean Debt Crisis -

• Printing Currency - This is the one of the way to solve out the problem of debt crisis, by printing new currency in economy, it leads to more circulation of money in country, which will increase the investment in country, which are useful to increase GDP growth rate of country. So this problem can be solved out.
• Devaluation Of Currency - It menas decline in value of home currency in terms of other Country's currency, which makes the domestic entrepreneur to do trade in other countries, which are very much beneficial to promote export in other countries and leads to improve GDP growth of country.