Nobody downloaded yet

Adoption of the Euro and the European Countries Economies - Essay Example

Comments (1) Cite this document
Summary
The research aims to analyze the benefits and challenges of the euro as the single currency for the nations of the European Union. The adoption of the euro has been benefactor for the economies of the European nations, if we consider only the major macroeconomic variables as important measuring variables…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
Adoption of the Euro and the European Countries Economies
Read TextPreview

Extract of sample
"Adoption of the Euro and the European Countries Economies"

Download file to see previous pages It is evident from the study that the need to achieve a stable monetary and economic stability for these countries, the need for appropriate rule of law and respect for the human rights and the protection for the minorities, the proper and efficient functioning of the market economy, to enhance the capability of all the countries to work together in the face of economic as well as political crises and pressure of the market forces etc. It was also aimed to achieve full cost transparency and price transparency. These were aimed to achieve for the single market for goods and services as well as for labour and capital. They aim was focused on the achievement of the exchange rate stability and economies of scale in the production process and hence on an efficient market mechanism with efficient market allocation and distribution of resources. Among the other major economic goals, the need for an introduction of low inflation and low level of long-term interest rates for the member countries. The benefits obtained from the adoption of the euro can be discussed considering two perspectives. One is from the point of view of the economies of each countries and the other from the perspective of the euro zone as a whole. Considering first the entire euro area it can be said that the adoption has helped all the countries to achieve greater economic and monetary stability. It also helped to achieve greater economies of scale as well as greater economies of scope in the production of goods and services. ...
g the other major economic goals, the need for an introduction of low inflation and low level of long-term interest rates for the member countries (Tumpel-Gugerell, 2007). Benefits: The benefits obtained from the adoption of the euro can be discussed considering two perspectives. One is from the point of view of the economies of each countries and the other from the perspective of the euro zone as a whole. Considering first the entire euro area it can be said that the adoption has helped all the countries to achieve greater economic and monetary stability. It also helped to achieve greater economies of scale as well as greater economies of scope in the production of goods and services. It also helped in achieving efficient market outcomes with efficient allocation of scarce resources of the economies along with efficient distributions. The biggest benefit from the adoption was the exchange rate stability and the price stability among the member countries. After the adoption, the European countries experienced low rate of inflation and lower rate of long-term interest rates (Tumpel-Gugerell, 2007). There has been a process of convergences with respect to stable long-term interest rates and low inflation rates. After the adoption of the euro, monetary policies became more credible to the markets compared to the pre-adoption period. This was one of the major benefits that the eurozone has acquired from the introduction of a single monetary authority. The monetary policies were initiated with the major goal of reaching price stability and interest rate stability. The targeted inflation rate was mentioned to be within 2 % in the medium run (Schadler, 2005, pp. 106-110). Events, such as oil price shock in the early 1990s, have created great barriers to achieve this price and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Adoption of the Euro and the European Countries Economies Essay”, n.d.)
Retrieved from https://studentshare.org/history/1393506-adoption-of-the-euro-and-the-european-countries-economies
(Adoption of the Euro and the European Countries Economies Essay)
https://studentshare.org/history/1393506-adoption-of-the-euro-and-the-european-countries-economies.
“Adoption of the Euro and the European Countries Economies Essay”, n.d. https://studentshare.org/history/1393506-adoption-of-the-euro-and-the-european-countries-economies.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ja
jailynkeebler added comment 8 months ago
Student rated this paper as
I never thought 2750 words essay could be written in such a free manner. I loved the research of this essay. Will definitely use it for my own work!
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Economic Crisis in Greece and its Impact on the Euro
...by eliminating exchange rate fluctuations. These advantageous features of a common currency subsist till price stability is delivered by the central bank of the monetary union and is plausible. In the case of the euro zone, the European Central Bank had rapidly recognized its anti-inflation recommendations and became credible (Provopoulos, 1-2). In spite of the above mentioned advantages, there are certain costs relevant to the adoption of euro as the common currency. A country joining the euro zone becomes incapable of setting its own domestic economic policy. Also, it no more possesses the ability to alter the nominal exchange rate of its...
8 Pages(2000 words)Essay
Euro Behaviour
...Euro is usually used within the Euro region with some exception of a few non-memberscountries. It has had a steady performance since its inception except for some few instances that it has not maintained its track. The performance has however been commendable since 2005 with analysts debating on the possibility of it overtaking the U.S dollar as the world’s most used currency for international exchange. Her adoption as state currencies for other nations has equally risen over the time (Hishow, 2007, p. 3-15). The states intending to adopt the Euro as their currency do so by entering into formal agreements with the European Union member...
8 Pages(2000 words)Essay
European single currency
...The Euro: European Single Currency The idea of a European common currency had been in the drawing board since 1993, but the Euro as EU's common currency went into circulation in 1999 and was considered as a major step towards European integration. The ratification of the Maastricht treaty in November of 1993 was responsible for the creation of the European Monetary Union or EMU and adopted the Euro as their common currency (European commission, n.d.). When the Euro was introduced into EMU on January 1, 1999, it became the new official currency of the 15 member countries thereby replacing their old national currencies like Deutschmark of Germany and Franc of France. The Euro was introduced first as a virtual currency... them...
13 Pages(3250 words)Essay
European Central Bank
...on European Union, which is also referred to as Treaty of Maastricht. Despite the fact that the bank was established on June 1998, it started operating six months later on 1 January 1999. This was when the euro was introduced as the bank had been set up with the euro in mind. The euro, as indicated above, came after the establishment of the European central bank. It is the official currency that has been adopted by a total of 16 members of the European Union, out of the twenty seven that are members. The states which have adopted this currency as their official currency belong to what is referred to as the...
9 Pages(2250 words)Essay
Euro Currency
...BUSINESS ECONOMICS The single currency proposes great opportunities for the s to improve their internal economic and political operations and protect their economies. This transformation of western European capitalism is reflected in the process of European integration as it experienced from the mid-1980s with the Single European Act (SEA) and the treaty of Maastricht, paving the way for the completion of the internal market and monetary union respectively. This new development of the single currency follow in five steps: (1) a stronger role for the European Council; (2) a common acceptance within the monetary Community of the goals of each national monetary...
10 Pages(2500 words)Essay
Should Britain adopt the Euro
...Should Britain adopt the Euro? The majority of Britain’s do not want to abandon the Pound Sterling, a hundreds year-old currency, and adopt the European Monetary Unit (EMU) or Euro as its national currency despite the enormous evidence that supports the benefits this move would provide and rebukes the arguments against its acceptance. On January 1, 2001, 12 of the 15 countries in Europe replaced their currencies with the Euro so as to eradicate trading obstacles between European Union (EU) nations which was intended to increase trade and investment between these countries. This common currency...
4 Pages(1000 words)Essay
Should the UK join the Euro currency
...with the economies of the member states and their cooperation towards the creation of a strong and competitive economy in the international marketplace. The appearance of euro in 1999 and its acceptance by 11 countries of European Union (at a primary stage) has been the most significant effort of the Community towards this direction. Since its introduction euro has verified the provisions referring to its success. However, there are countries of the European Union that have not been convinced on the stability of the new (common) currency and for this reason are still reluctant in entering the...
39 Pages(9750 words)Essay
EU communication strategy and the euro implementation
...identity and sovereignty and viewing adoption as a barrier to the country’s continued progress and prosperity. In the case of Slovakia, however, adoption was openly embraced, and the process undertaken as flawlessly as possible, supported by the national perception that the adoption of the euro will bring about economic stability and prosperity made possible by a single European market. The difference between the two countries is borne by the discrepancies in public perception about the prospects of euro adoption. This study examines the circumstances which circumscribed each case, the nature,...
32 Pages(8000 words)Essay
Monetary and Fiscal Policy in the Euro Area
...monetary policy in the euro area to its member countries has promoted macroeconomic stability, encouraged the European economic integration, advanced trade across the international borders within the euro area, investment and financial and monetary integration coupled with the national fiscal policies. An advanced regulation regarding the budgetary movement has alarmed the European economies with the policy based stability and growth promise. The buoyancies of the EU have also been enhanced by the EMU for resisting the undesirable shocks and fostering the leadership of the EU in the arena of the international economy. In response...
36 Pages(9000 words)Essay
Small Successful European Economies
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Adoption of the Euro and the European Countries Economies for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us