June 20 (Bloomberg) -- Bank of England policy maker Adam Posen said the euro has been a success "as a monetary unit" and it will get through the crisis in the currency region.
"The euro has been a success as a monetary unit and as a monetary union, but people expected too much from it and it was never going to take the global role that some fantasized for it," Posen said at a conference in Madrid today. "The euro will get through it," he said, referring to the region's debt crisis.
"We're looking at a world where the dollar will be declining in relative importance and where, God willing, the renminbi will be an important, more internationally traded, currency," he said.
Posen also said he expects global imbalances to "shrink greatly."
"Rising middle classes tend to demand decent wages and rising middle classes tend not to let their governments sit on billions of dollars," he said, citing examples in Brazil and South Korea. "If China continues to develop economically and even politically as it does and has to meet the demands of its people, it will inherently have to start raising wages to compensate its people for their productivity and that will reduce global imbalances."
Source: www.sfgate.com
"The euro has been a success as a monetary unit and as a monetary union, but people expected too much from it and it was never going to take the global role that some fantasized for it," Posen said at a conference in Madrid today. "The euro will get through it," he said, referring to the region's debt crisis.
"We're looking at a world where the dollar will be declining in relative importance and where, God willing, the renminbi will be an important, more internationally traded, currency," he said.
Posen also said he expects global imbalances to "shrink greatly."
"Rising middle classes tend to demand decent wages and rising middle classes tend not to let their governments sit on billions of dollars," he said, citing examples in Brazil and South Korea. "If China continues to develop economically and even politically as it does and has to meet the demands of its people, it will inherently have to start raising wages to compensate its people for their productivity and that will reduce global imbalances."
Source: www.sfgate.com
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