Discussion Is Euorpean economy almost at par with America's economy, or is it America almost at par with Europe?

[Amol S.]

I did some googling and found out that usually the value of currency is used to determine how well a economic market of a region or country is doing. If this is true, then is it Amerca that is almost at par with European economy, or is it Europe that is almost at par with America's economy? The value of the American $ is close to the value of the Euro. The question is if the Euro is falling, or it the American $ that is gaining?

 

[DigDog]

they are different.

to say things that dont have much meaning, the US economy is stronger, but not by much. It is also more volatile. There's not just one parameter "who makes moar mony". Off the top of my head China has a stronger economy than anyone else, and there is also the consideration of how much a country's economy is valued by foreign investors; china has enormous growth which attracts investment.

Also, consider that economy is more of an art rather than an exact science, and in the long run most analysts tend to be mostly wrong most of the time.

Warren Buffet seems to be on the money a lot so, ask him.

 

[Sonikku]

Governments also manipulate their currencies.

 

[Exterous]

to say things that dont have much meaning, the US economy is stronger, but not by much. It is also more volatile.

I'm not sure thats true. Europe has had several notable issues in the past years causing economy volatility reflected in various measurements: PIIGS, immigration issues, Brexit. The Euro was more volatile against the USD in 2019. The European stock markets indexes are significantly more spiky in returns than the US of 5 years and overall 5 year returns were ~4.75% vs 12.3%. I believe Euro bonds have similarly more inconsistent returns were they to be amalgamated.

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The US is certianly not without its own issues but the organization of the US economy tends to smooth those over compared to the much looser Euro zone

US vs The World or Euro has also been a back and forth historically so it would not surprise me for that to change again in the next few years