The One-Size Euro Mightn't Be So Tight After All

ECB easing means that more countries are closer to an ideal exchange rate

It's a given that the euro can't have the right exchange rate for all of its 19 diverse members, all of the time. Yet at the helm of the European Central Bank, Mario Draghi may be making it a closer fit for more countries, more of the time.

Angel Talavera, an economist at Oxford Economics in London, has calculated for Bloomberg Benchmark what would have been the “equilibrium” exchange rate for 8 euro-area economies between 2011 and 2015 − the rate that would be best suited to an economy's domestic and external profiles.

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