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Theoretically, the Punts Reintroduction

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    #92
    Maura74
    Banned (with Prison Access) Posts: 559 ✭✭✭Maura74


    FreudianSlippers wrote: »
    I fail to see how the Fiscal Compact Treaty really means more Europe in our daily lives. I also heard on the radio the other day a discussion about the treaty and young people texting and phoning in had little to no idea about what the treaty was about. In fact, one young girl; when presented with the treaty wording and purpose said "yeah I like that bit... keep that but change the other stuff. I'm still voting no" - completely failing to realise that was the extent of the treaty and there was no "other stuff"

    I cannot see that either, it is about the currency and not more europe in people daily lives.

    However, I fee there maybe a problem in the euro-zone because there are many different languages and each language is interpreted differently
    in each country.


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    #93
    Formation
    Registered Users Posts: 712 ✭✭✭Formation


    Am I right in thinking that if I had E100,000 in cash hidden under my mattress that if:

    Ireland exit the euro and the "fiat punto" is devalued 50% I can, at any time, exchange my E100k mattress cash for IR£200k?

    2. If there is a breakup of the eurozone I can exchange my E100k for IR£100k no matter how the "fiat punto" fares?

    Both scenarios assume 1:1 at punt introduction.


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    #94
    Farmer Pudsey
    Registered Users Posts: 6,326 ✭✭✭Farmer Pudsey


    Formation wrote: »
    Am I right in thinking that if I had E100,000 in cash hidden under my mattress that if:

    Ireland exit the euro and the "fiat punto" is devalued 50% I can, at any time, exchange my E100k mattress cash for IR£200k?

    2. If there is a breakup of the eurozone I can exchange my E100k for IR£100k no matter how the "fiat punto" fares?

    Both scenarios assume 1:1 at punt introduction.

    While I can see Ireland exiting the euro I cannot se it devaluing by more than 20% and maybe not quite that much. I'd imagine that if Ireland left the euro any Irish euros in notes and coins would be only worth one punt.

    All euro's have a letter at the start of the serial no this signifies the country that this note was printed in.


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    #95
    Maura74
    Banned (with Prison Access) Posts: 559 ✭✭✭Maura74


    Farmer Pudsey wrote: »
    While I can see Ireland exiting the euro I cannot se it devaluing by more than 20% and maybe not quite that much. I'd imagine that if Ireland left the euro any Irish euros in notes and coins would be only worth one punt.

    All euro's have a letter at the start of the serial no this signifies the country that this note was printed in.

    If Ireland leaves the euro would it not be better to go back to sterling as it was in the seventies.


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    #96
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,269 CMod ✭✭✭✭Nody


    Farmer Pudsey wrote: »
    While I can see Ireland exiting the euro I cannot se it devaluing by more than 20% and maybe not quite that much. I'd imagine that if Ireland left the euro any Irish euros in notes and coins would be only worth one punt.

    All euro's have a letter at the start of the serial no this signifies the country that this note was printed in.
    Not really because there has been nothing done to limit "irish" bills to Ireland; hence the guy can have a German euro bill as well. What is likely that either you have a free exchange rate (no matter were the bill come from) or that the state mandates that all exchanges "over the counter" is done at a fixed exchange rate while the currency floats outside it.


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    #97
    ArmaniJeanss
    Registered Users Posts: 13,313 ✭✭✭✭ArmaniJeanss


    Maura74 wrote: »
    If Ireland leaves the euro would it not be better to go back to sterling as it was in the seventies.

    Why leave one currency union for another?

    The theoretical postives (rightly or wrongly) behind leaving the Euro and reverting to a Punt are that we could control our own interest rates and the amount of currency printing we do. And by extension set our own inflation targets, debt ratios etc.

    Whereas if we look to maintain a 1:1 ratio with Sterling, we'll have to maintain the same interest rates as the BOE and only print an agreed amount of punts each year.


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    #98
    Maura74
    Banned (with Prison Access) Posts: 559 ✭✭✭Maura74


    ArmaniJeanss wrote: »
    Why leave one currency union for another?

    The theoretical postives (rightly or wrongly) behind leaving the Euro and reverting to a Punt are that we could control our own interest rates and the amount of currency printing we do. And by extension set our own inflation targets, debt ratios etc.

    Whereas if we look to maintain a 1:1 ratio with Sterling, we'll have to maintain the same interest rates as the BOE and only print an agreed amount of punts each year.

    Why not, The International Monetary Fund (IMF) has said the UK's continuing economic weakness means authorities should consider more quantitative easing (QE) and even cutting interest rates. That will help the Irish economy to start growth and help pay off its debts.

    http://www.bbc.co.uk/news/business-18158226


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    #99
    ArmaniJeanss
    Registered Users Posts: 13,313 ✭✭✭✭ArmaniJeanss


    Maura74 wrote: »
    Why not, The International Monetary Fund (IMF) has said the UK's continuing economic weakness means authorities should consider more quantitative easing (QE) and even cutting interest rates. That will help the Irish economy to start growth and help pay off its debts.

    http://www.bbc.co.uk/news/business-18158226

    BOE rate is .50, not much scope for a reduction there.
    They've had about 3 years of QE at this stage, and it doesn't seem to be a miracle cure.

    Sorry, still not seeing any good reason to leave one currency union purely to join another.


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    #100
    Formation
    Registered Users Posts: 712 ✭✭✭Formation


    Farmer Pudsey wrote: »
    While I can see Ireland exiting the euro I cannot se it devaluing by more than 20% and maybe not quite that much. I'd imagine that if Ireland left the euro any Irish euros in notes and coins would be only worth one punt.

    All euro's have a letter at the start of the serial no this signifies the country that this note was printed in.
    non irish people the world over have irish euros. Why do they lose out?

    why do you think it will only devalue by max 20%?


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