Home News Why is the discussion about adopting the euro so complicated? Because it is not certain that we are asking the right questions

Why is the discussion about adopting the euro so complicated? Because it is not certain that we are asking the right questions

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Why is the discussion about adopting the euro so complicated?  Because it is not certain that we are asking the right questions

MFor years, there has been a public debate about the advantages and disadvantages of drinking euros, as long as it is a very complex issue. There are original reasons, that’s why it is and has to be. Who are they and what is the outcome of them?

There is no possibility to challenge a fact twice in real life and then conveniently compare the results of both alternatives. This is possible only in science fiction novels or in underground simulations, but not in the real world, where you can’t rewind a given day and play it again and again. Economic analyzes (and not only economic ones) must try to imagine the second reality in as much detail as possible, model it as best as possible, and make the most favorable assumptions. Unfortunately, we cannot reliably estimate the state in which the Czech economy would be today if we were to use the euro for some time, and on the basis of that, pronounce strong and tame animals.

In the same way, it is not possible to say for a long time what situation Slovakia, for example, would be in today if it had not adopted the euro in 2009 and kept its crown. As a starting point out of necessity, it is possible to compare two countries that are similar, and from that to deduce the effects that drinking the euro could have.

Czech and Slovak economies are comparable to this. A detailed look at the case shows that an analogy to Slovakia after drinking the euro would be to take into account its much more expansive fiscal policy, which we did not have in our country, a different structure of both economies in terms of the typical size of companies in industrial sectors, and gave differences. Even the best available analogy can only serve as an illustration, but not as a proof. Ease of depositing and transferring the euro does not mean that there are no days. Just because you can’t see the black cock in the dark doesn’t mean it’s not there.

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