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Most PPP values or other estimates of the euro dollar "fair" value usually put it in the 1.10-1.30 range, so the euro is theoretically overvalued, on a purely bilateral basis.

But of course nothing is bilateral in that relationship.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Sep 12th, 2007 at 06:59:56 PM EST
[ Parent ]
the dollar is not undervalued against the Euro

means that the dollar is fairly valued or overvalued

so the euro is theoretically overvalued, on a purely bilateral basis

and then my head explodes.

Oye, vatos, dees English sink todos mi ships, chinga sus madres, so escuche: el fleet es ahora refloated, OK? — The War Nerd

by Migeru (migeru at eurotrib dot com) on Wed Sep 12th, 2007 at 07:09:14 PM EST
[ Parent ]

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