The Economist article, “If the European economy is so fragile, why is the euro so strong? of RA explains why and how the value of the euro remains strong, even though the European economy is going through many difficulties. Throughout the article it is explained how the appreciation of a currency may not always be a good improvement and what negative consequences the appreciation of a currency can bring. The article also explains how exchange rate movements cannot be easily explained and gives more details on Euro exchange rates. The article begins by stating that recently the Eurozone has been facing a good improving trend in terms of economy and management. to get out of the recession. In the Eurozone, unemployment is falling and concerns about crises disappear over time. However, the fear of deflation exists. As the article continues, it explains how the appreciation of a currency can cause very large and serious problems. To better explain this point, an example of American cars is given in the article; If the U.S. dollar appreciates against the euro or yen while car prices do not change, it will be more expensive for countries that use the euro or yen as their currency to buy American cars. Due to this appreciation in the value of the dollar, the number of cars exported to the United States will decrease. This is exactly the same reason why Europe fears a strong currency; the strong euro makes European goods and services more expensive for other countries and thus reduces the quantities sold abroad. Furthermore, as households, businesses and the government reduce their spending, the development and growth of the economy is highly dependent on paper products and services in demand around the world, hence the strength of the euro, at least as determined by the “demand” side of the equation. The supply side of the equation would concern the extent to which the European Central Bank pushes credit expansion, which tends to depress the value of the euro. Additionally, the article uses expressions that don't ring true when you consider them. think of a big economy like Europe; for example, it is mentioned at the end of the article that “the surest way to lower it is to earn more euros”. The European system certainly has a slow and difficult to predict response time, many variables and its behavior is definitely non-linear. So, using such a simple and straightforward expression regarding the Euro exchange rate may not be a good thing to do, although it is a correct statement to some extent..