Who is taking more consistent action against high inflation: the Americans or the Europeans? The market thinks, the US Federal Reserve. The European central bank, on the other hand, has maneuvered itself into a corner and apparently even fears a new euro crisis.
The value of the euro falls.
20 years after a temporary high of up to 1.60 dollars, the euro has fallen back to earth: on Tuesday a unit of the single currency costs just one dollar. For over the past few decades, Europe has indulged in illusions in monetary, financial, economic and geopolitical terms – and now the continent is paying the price. Hardly anywhere can this be better seen than in the exchange rate development of the book currency introduced in January 1999. Since the beginning of the year alone, it has lost almost 12 percent of its value against the American currency, and the euro exchange rate fell to its lowest level in two decades on Tuesday.