Everything on Currency & Trade

China’s export competitiveness is driven significantly by real exchange rate depreciation resulting from domestic deflation and wage restraint, similar to Germany’s 1990s strategy.

Impact: Understanding this mechanism reveals that tariffs alone are insufficient; European firms must improve productivity to compete on value rather than price.

— from China Shock 2.0: Real Impact on European Industry · Mikroökonomen a.k.a. Mikrooekonomen· Sep 26, 2026

The US dollar has weakened significantly due to political instability and potential government shutdowns. This depreciation increases the cost of European exports to the US and signals broader uncertainty in global financial markets.

Impact: Exporters must hedge against currency volatility, while investors should monitor the impact of US political risks on global asset allocation and trade flows.

— from Global Economic Shifts: Shadow Economy, Dollar, and Trade · im Loop: Der News-Podcast von Finanzfluss· Jan 28, 2026