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Long Term Advantages of a high exchange rate:

There are certainly several advantages to keep the Euro (EUR) at a high level compared to the US Dollar (USD):

Import Strength:

The fall of the USD versus the EUR will cause a shift in the import/export balance between Europe and the US. Given the relative higher purchasing power of the EUR, it enables the EUR users to import goods cheaper from the US and therefore imports from the US will increase. According to the BEA [1] US exports to the EU were up by 14% in 2004.

Purchasing Power abroad:

As a consumer or tourist, my relative purchasing power in the US has increased and thus I can shop for products sold in the US cheaper. Tourism therefore to the US will increase. "What we are seeing is a double-digit increase in international shoppers over last year," [2] The report continues that "for example, in 2003, the average house in Florida cost $160,000, or about 98,000 British pounds. This year, the same house has increased...

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Title: The Exchange Rate In Europe
Approximate word count: 1160
Approximate pages: 5 (250 words per double-spaced page)

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1. The Exchange Rate In Europe
   

   The Exchange Rate in Europe. Long Term Advantages of a high exchange rate:
   There are certainly several advantages to keep the Euro ...

2. European Monetary System’S Strengths And Weaknesses
   

   ... In conclusion, the EMS was adopted to preserve the exchange rate stability within
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3. Erm
   

   ... Did it happen? Discuss. The Exchange Rate Mechanism (ERM) was created in 1990,
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4. Global Financing And Exchange Rate Mechanisms Paper
   

   ... The purpose of this paper is to analyze the exchange rate mechanism (Euro Currency ...
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5. Euro
   

   ... In practice, wages in Europe tend to show a reasonably quick responses to prices,
   so that any real impact of exchange rate movements is quickly eroded. ...