I'm in no way posing myself as an expert on national echonomy. I might be utterly wrong on the following thoughts, but I think they make sense.
A blogger- HAX- ( and others) has made a point out of the pro's of having a floating currency (like our SEK). They mean that a floating currency is just what it takes to fight the ongoing echonomical rescession. They mean that the low value of the SEK is good for the export industry. Sweden is an exporting country so that would make sense don't you think?
I can't think of a single thing Sweden exports that has not parts in it or are wholy made from imported parts.
The few natural resources we have like iron, gold and energy are all traded on international spotmarkets either in USD or EURO!
Presto! That means that everything we produce will be more expensive to produce because of the low value of the SEK.
Then again, while we are an exporting country, we are an importing people. I can't find a single thing in my apartement that is not imported in one way or another. Not even the frigging tomatoe plants I have are domestic. And then there is the fertilizer that has phosphor and other stuff in it that must be imported. ALL the food I eat are either imported or made by imported ingredinses, or driven up or cultivated with the help from imported goods.
So a weak currency can only be good for the export market as long as you can sell stuff that has been produced when the currency was strong. Am I wrong?
5-6 years ago the € was 6 SEK to 1, now it is 12 to one. I have gotten 50% poorer over the past 5-6 years compared to an EURO country.
I just can't bend my brain around this!
Especially when we allready are in the EMU, for everything but the common currency.
Explain for me please...