Flying Higher

Almost since the euro was born three years ago as Europe's common currency, analysts have been proclaiming that it was undervalued against the dollar. Despite the dot.com wreckage, a sagging stock market and the Sept. 11 terrorist attacks the dollar remained unexpectedly and even inexplicably strong. Now the euro's day may have finally arrived. Last week, the euro was trading 10% higher than in February and economists think it has room for further appreciation. But is the euro's new-found strength really good for Europe?

Maybe not. Sure, inflation will be held in check and prices for such imports...