the euro drop

The euro reached a nine-year low against the dollar. Falling of German factory orders, and increased speculation about extra stimulus measures to combat Eurozone deflation played a part in the euro’s drop. European Central Bank will soon move to support the region’s economy with quantitative easing, or buying government bonds, but this pushes a rate rise even further, so the Eurozone will become less attractive for investors. The results of upcoming Greek elections could also be spooking investors.

I feel it’s more difficult to recover the euro’s economy than Japan’s. Many countries must cooperate to aim one goal, but each ones are busy tackling own countries’ economy, so keeping the balance is much difficult. Greece’s, Italy’s, and Spain’s economy are not good, I heard. It is the fact that these counties drag the EU’s economy down. Different from EU, Japan can decide what to do earlier, when the yen drops, we should do quantitative easing, raising tax price, strengthen tourism. It’s not so complicated compared. However, Japan is always in deflation, I have never experienced inflation since I was born. I want to live in Japan in inflation, but economy is like one creature, so I think planning good ways, struggling to get the better economy will never end.

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