[stefan10]

1. after our last discussion i visited the OECD homepage and looked up the Italians numbers.
Italy has no inflation problem and has to pay much lower interests for their dept.

2. Italy tried the devaluation policy for decades but in the long run this policy leads to additional problems.
You will loose international investments and have to pay unbelievable high rates while the benefit of the devaluation is only short.

3. The Italian economy must learn to live without the sweet poison of currency devaluation and Italy will benefit from that in the long run.

4. I would agree that the ECB must change their policy in some ways. They must add the support of economic growth to their goals as the FED in the US but the ECB was build like the German Bundesbank.

5. I always thought that the argument countries like France and Italy need a different policy than for example Ireland is the best argument against the EURO but last week the ECB published a survey that this is not the case.

[a freedom-loving italian]

1. True, that's was the idea behind joining the Euro. Speaking of inflation: just pay a short visit here and you'll find by yourself...

2. The devaluation was more than justified by the country's economic fundamentals: we have a whole area of this country (South Italy) which is basically a third-world economy and is in no way capable of competing with North-European countries.

3. That's correct in theory. In practice, you might want to consider that a third-world economy such as the South Italian economy simply cannot afford to live without devaluation. BTW even the powerful US economy has seen a devaluation of its currency against the Euro, hasn't it?

4. OK

5. So what are the main points of this survey? Does it take note of the enormous difference between North and South of Italy?