Spanish Currency in Jeopardy (via Bobby’s Blog)

I thought that this blog post had an insightful analysis on the Spanish currency exchange rate and how the exchange rate is affecting the current account of the Spanish economy. According to the blog post, Spanish are experiencing double-digit deficit in their current account. In addition, the author analyzes the Spanish dilemma over whether they should stay or defect from Euro.

Spanish Currency in Jeopardy At this time, Spain, as part of the PIGS, countries that have double digit deficits in terms of current account in GDP, is suffering greatly. According to the article by Paul Krugman, the only solution Spain has formulated in order to recover from the deficit is to abandon the euro currency. By doing so, they will be free from Germany, a country that is doing relatively well in light of the current recession. Unlike Spain, it is currently experie … Read More

via Bobby’s Blog

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