Essay --

France is considered a very prosperous nation. The successfulness of this nation was aboutly from the huge economic changes that were made after the 1940s. This was because the French government started to modernize the sparing. They developed new methods of production and trade by dint of a series of national plans. Although, they still have macroeconomic problems incisively like every other country.Macroeconomics atomic number 18 economic concepts and theories that apply to the economy as a whole. Macroeconomic problems are issues much(prenominal) as inflation, symmetry of payments disequilibrium, fluctuations in diversify consecrates, depreciation in currency, and the decision as to whether a country should have a floating or managed exchange rate. However, Frances leaders remain committed to a capitalism in which they maintain favorable equity by means of laws, tax policies, and social spending that palliate economic in luciferity. Frances main source of currency is the Euro. As with most countries, France does their best 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 then the value of the Euro has declined over 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 knock d avow over the last year as in 2012, it was at 2.2%. take down though, this is relatively low, which is why they are such a prosperous nation. They are especially 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 internationalist monetary system was indispensable. He 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 terror in several countries that single currency countries whose efforts to better their competitiveness could be destroyed by the Euro, which has been rising in value. This fear may soon be put to rest though, as the Euro has had modern strength. The macroeconomic problems in France are relatively minor compared to the ones of other countries. contempt stagnant 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 fairly strong country.