The Steroid of Forex Leverage-How the PIIGS Propel the German Export Juggernaut

Abstract

The formation of the Eurozone and adoption of the Euro as a unifying currency has gone a long way in solidifying the economic prowess of the post-world war II continent. The single currency has cut transactions costs and added fluidity to all forms of intra zone trading. The thrust of this research will focus on the impact that Portugal, Italy, Ireland, Greece and Spain (PIIGS) had upon the export strength of the German economy. The Swiss Franc is considered a surrogate for the DM therefore the authors examine how the Swiss Franc reacted once the Swiss government elected to break its linkage to the Euro.