SEATTLE, Sept. 10, 2015 /PRNewswire/ -- Coupofy.com, a leading database of online coupon codes has observed the shrinking Euro firsthand while monitoring online shopping within the EU. In 2007 consumers could buy a loaf of bread in France for €1, today it costs €1.42. A boneless chick fillet pack was €4.11 and is now €6.78. Curious to know more Coupofy researched and compiled data on some of the leading causes of Euro devaluation.
Back in 2007 investors denied the idea that the US subprime mortgage fiasco would have an impact on the Euro, but how wrong they were. Hand in hand with the brewing Greek debt crisis, within less than two years the price of the Euro in Dollars fell from $1.47 to around $1.25. Interest rate changes and other measures did nothing to stave off the panic and today investors are actively betting on the Euro's decline and reinvesting in GBP, keeping its value at an all time low of around $1.05.
Although most of the world has experienced recession since 2007, its countries outside of the Eurozone have experienced the most recovery and growth. Leading the pack is Sweden at a growth rate of 39%, as opposed to the Eurozone's top performing country Estonia, at 38%. The average however is much worse with 29% growth outside compared to the Eurozone's 9%.
Among the many reasons why the Euro's value is so low is the ECB's desperate attempts at alleviating the collective European debt. Quantitative Easing (the practise of issuing vast amounts of new money to kick start borrowing and investing) has the negative effect of making every Euro currently in circulation worth less. The more of something there is, the less it is worth. The hope is that this new money will boost the economy, but so far it's kept the Euro low and annoyed savers.
It's now apparent that Greece's entry was perhaps the EU's biggest blunder, but what is the solution. Their removal completely as proposed by economist DeAnne Julius, or a writing off of their debt as suggested by Paul De Grauwe of the LSE?
Whatever the solution it needs to happen sooner rather than later, else the Euro may continue to shrink.
Georgi Georgiev, Marketing Director
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