Essay --

France is considered a very prosperous province. The prosperity of this nation was mostly from the huge frugal changes that were made after the 1940s. This was because the French political sympathies started to modernize the economy. They developed new methods of production and trade through a series of national plans. Although, they still have macroeconomic problems just corresponding every other rude.Macroeconomics are economic concepts and theories that apply to the economy as a whole. Macroeconomic problems are issues such as inflation, balance of payments disequilibrium, fluctuations in exchange roams, depreciation in currency, and the decision as to whether a country should have a floating or managed exchange rate. However, Frances leaders tarry committed to a capitalism in which they maintain social faithfulness by means of laws, tax policies, and social spending that mitigate economic inequality. Frances main source of currency is the Euro. As with most countri es, France does their stovepipe to base their currency off the U.S. Dollar. As of 2011 (World Book Encyclopedia), the Euro was equal with the U.S. Dollar. Unfortunately, since therefore(prenominal) the value of the Euro has declined everyplace the years. According to the exchange rate, in 2012 it was at .78, and in 2013 it was at .76. This shows that the Euro is depreciating. This follows into the matter of inflation. France has an inflation rate for consumer prices of 1.1% (2014). This apparently went down over the last year as in 2012, it was at 2.2%. Even though, this is comparatively low, which is why they are such a prosperous nation. They are peculiarly low when comparing their inflation rate with some countries such as Zimbabwe, who has an inflation rate of 8.5% (2013). Compared to the w... ...g opposed active exchange rate intervention. Hollande then contradicted their point of view by saying reform of the international pecuniary system was indispensable. H e feels that France needs to decide on medium-term exchange rate and act on an international level to protect their own interests. there is the fear in several countries that single currency countries whose efforts to improve their engagement could be destroyed by the Euro, which has been rising in value. This fear whitethorn soon be put to rest though, as the Euro has had recent strength. The macroeconomic problems in France are relatively minor compared to the ones of other countries. Despite dead(a) growth and fiscal challenges, Frances borrowing costs have declined in recent years because investors remain attracted to the liquidity of Frances bonds. Thus, they are a jolly strong country.