Debunking the "weaker currency = more exports" myth in 2 seconds...

[SamuelRSmith]

crissindahouse said:

germany has high exports and it profits if the euro isn't so strong. as example chinese like german machines, if our euro would be 3x as strong as the australian dollar, they would maybe buy machines in australia instead.

now this doesn't automatically mean we will export more with a weaker euro, if other countries don't need a lot at that time they won't buy something from us even if the euro is weak but is is much cheaper for them to buy it in germany if the euro is weak.

i can give you an own example of me, i bought a lot of games in uk in the past, but only if the difference between pound and euo was so big to justify it for me. sometimes the price difference wasn't enough to me but when it was, i bought it in uk and increased uk's exports.

The Euro may not be strong, but prices are higher in Germany than they otherwise would be. Chinese people might have to spend more yuan to get the Euros, but when they get the Euros, all the prices for German goods would be lower.