B-DAY (Prenounced “Bidet”) – New York Times: Poland’s Sovereign Currency Lifts Economy


Rebel Alliance Credit

Rebel Alliance Credit

From the New York Times, comparing Ireland past with Poland present – Poland’s Currency Lifts Economy:

Poland now, like Ireland then, has its own currency. Being outside the euro zone is working to Poland’s economic advantage.

That is not the only reason Poland is currently that rare species: a financially vibrant member of the European Union. But it is to Poland’s benefit not to be bound by a common currency, at a time when euro zone countries like Ireland will have trouble using cheap exports to grow their way out of trouble…

… during the global economic crisis… “Certainly the fact that the zloty could be adjusted helped us.”

The floating zloty, which has fallen about 18 percent against the euro since early 2009, acted as a pressure release valve, helping to keep Polish products competitive on world markets and insulating Poland from the effects of the sovereign debt crisis.

Poland has proved itself to be Europe’s most dogged economy during the last two years. It was the only member of the European Union to avoid recession, soldiering on even after a plane crash in April killed much of the political elite…

Polish leaders insist that they have learned from Ireland’s experience, and will not repeat it, vowing to keep economic exuberance in check to avoid the hangover that Ireland is now suffering. “In good times we don’t have to take the punch bowl away,” Jacek Rostowski, the Polish finance minister, told an audience in Warsaw last week. “Because it will never come out of the pantry.”

Read more.

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This entry was posted in Budget, Economy, EU, Euro / Sovereign Money, Housing Bubble, Ideology, Solutions and tagged , , . Bookmark the permalink.

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