They benefit consumers by lowering inflation in the tradables sector; make it cheaper for firms to import capital goods and new technologies; and can thereby support growth in innovation and productivity. But real appreciation can make life difficult for exporting and import-competing firms, especially if they have little ability to adjust their prices to compensate for exchange rate changes.
Willem F Duisenberg: Testimony before the Committee on Economic and Monetary Affairs of the European Parliament Introductory statement by Dr Willem F Duisenberg, President of the European Central Bank, Brussels, 10 September 2003. *  *  *  It is my pleasure to appear before your Committee here today.