Prof Panicos Demetriades, Professor of the Department of Economics at the University of Leicester, says that Germany should leave the eurozone.
This is what he wrote in his letter to Financial Times: “There is no doubt that both Greece and Portugal need devaluation to return to positive growth. But so does the rest of the periphery (Ireland, Spain and Italy). The main reason eurozone is not an optimal currency is not much the weakness of the periphery, but the strength of German economy… without Germany in the eurozone, the euro would quickly depreciate to a level that would reinstate the competitiveness of the periphery”.
The German newspaper called Focus was the first to pay attention to the solution offered by Prof Demetriades. The article mainly consisted of questions addressed to him: Is it really the hardworking Germans that hinder the eurozone’s wellbeing? Should other countries with stable economies (like Austria and Holland) follow Germany and leave the eurozone as well? Who will bailout Portugal and Greece? Can an economic union be viable without strong economies?
Another factor is moral. They ask the professor whether Greece (juggling with economic indicators) has more rights to be a eurozone member than Germany, one of the major economic “breadwinners”.
According to the Department of Volume Analysis of , the futures contract of Euro (6E) is moving in a range. There is the accumulation of trading volume going on between 1.4337 (6200 lots) and 1.4420 (7900 lots).
