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Tuesday, 30.04.2024, 00:48
Former deputy governor of Estonian Bank: euro will not save the economy
Juhan Tere, BC, Tallinn, 06.04.2009.
Print version
Print versionBo Kragh, former deputy governor of the Estonian central bank, advised Estonia not to overvalue the importance of entering the eurozone, and, moreover, to talk about devaluation in a more honest manner, LETA reported via Postimees.
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"Euro will not save the economy, it's more like a question of prestige. Ask the Spanish, Italians, Portuguese, whether joining the eurozone had a positive impact," Kragh said.
According to Kragh, Estonia should make a new peg for the kroon, but currently it is the right time to let the kroon float.
"In 1992 the Swedish government and central bank let the SEK peg free, SEK first dropped sharply, then composed itself and recovered at 17% lower level then before. The market fixed the peg of SEK and does so until today," he said.
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