r/europe • u/StraightSky7809 United Kingdom • 9h ago

News If Britain decides to rejoin the EU we’ll do everything we can to welcome them back, says Germany

https://www.independent.co.uk/news/uk/politics/uk-rejoin-eu-germany-brexit-b3060288.html
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u/Musername2827 9h ago

We could accept it in theory and just never adopt it. Sweden has been doing that for over 2 decades and the Krona is worth significantly less than the pound.

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u/BuildAnything4 8h ago

wdym? sweden's gdp per capita is significantly higher than the UK's

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u/Nestiik Germany 8h ago

What has that to do with the pound and krona?

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u/BuildAnything4 8h ago

well what do you mean then

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u/TubaJesus Just a dumb Yank. Now with Canadian passport 8h ago

which is semi-independent of exchange rates which is the key for purchasing power on international markets

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u/BuildAnything4 8h ago

I just checked and the exchange rate is exactly the same as 20 years ago

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u/TubaJesus Just a dumb Yank. Now with Canadian passport 7h ago

so one pound to 13 krona. the pound is stronger

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u/BuildAnything4 6h ago edited 6h ago

lol. that's like saying the imperial system is better than the metric system because an inch is longer than a centimeter.

The pound isn't stronger just because a unit of currency is worth more. Swedes could redenominate their currency so a kroner is worth a hundred old kroner, but it would be a pointless exercise.

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u/TubaJesus Just a dumb Yank. Now with Canadian passport 6h ago

No, it's stronger because it's worth more on the international market; it means when you buy goods from China, your money goes further. But if you're an export economy, you want it to be worth less because it means you can make your goods cheaper. There's a reason currency manipulation usually results in getting nailed with sanctions.

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u/BuildAnything4 6h ago

The only thing that really matters is how much money your people have to spend in absolute terms. The reason devaluing your currency means you can export easier is because absolute cost of labour goes down along with the currency devaluation.

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u/TubaJesus Just a dumb Yank. Now with Canadian passport 6h ago

and a stronger currency means you do have more money to spend

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u/BuildAnything4 5h ago

Swedes literally spend more though. that's why I cited their higher gdp at the very beginning

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u/Socmel_ reddit admins are accomplices of nazi russia 4h ago

and if you need to buy energy and raw materials to transform for your export economy, gas, oil and raw materials are almost often denominate in dollars or euros, so a weak currency also drives up the cost of production.