Sunday, January 04, 2004

Strong Euro, technically bigger Euro economy? And do we really spend that much on the military?
Recently, the Euro has been sharply up against the dollar. A few questions to anybody who might know the answer. First, all else held equal, does this affect the relative size for statistical purposes (for example that it has output one half of us) of the European economy compared to the economy of the United States (I assume yes). Second, if we assume that the dollar has been propped artificially up as some have suggested, does this mean that the complaints that we spend too much on military relative to other countries lose some of their force (because our expenditures were being overstated and the rest of the world's expenditures were being understated by this effect)?

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