> But what if the dollar falls against the euro and it just ends up hurting
> European exporters and the ECB shrugs its shoulders? That seems the more
> likely outcome.
That's where fiscal policy comes in -- the EU will have to run big deficits to keep the wheels of commerce turning. The next big challenge for the Euroleft will be pushing for mongo Eurokeynesianism -- at least 3% of EU GDP should do the trick. The ECB won't like this, but to hell with what they like or don't like -- if they even *think* about raising rates any time soon, then Frankfurt '02 will make Gothenburg/Genoa '01 look like kindergarten recess.
-- Dennis