StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Monetary Unification in Europe - Essay Example

Comments (0) Cite this document
Summary
Noted with great concern is Europe in the verge to either continue or cease the war on monetary unification. Recently, the Euro celebrated its first ten years since its existence, and as at January 2009, it was circulating in sixteen European Union member states. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Monetary Unification in Europe
Read Text Preview

Extract of sample "Monetary Unification in Europe"

Download file to see previous pages Critics were so skeptical on the Europe’s idea of monetary unification claiming that Europe was not close to optimal monetary union. This idea was just a mere political project, which did not give into account economic fundamentals and was doomed to fail the single currency, and Europe’s failure to see monetary unification as an evolutionary process. Over the past few years, the Euro has tremendously challenged the US dollar, which is globally reserved currency, and within a very short period, it has transformed economic and political landscape in Europe. Monetary experiments has never been such an exciting history as there have been no any sovereign state surrendered its currency to a common central bank currency restraining from monetary sovereignty (Charles, 2010:176).
Although the need to unify European currency started a long time ago, we begin to review its recent attempts to attain that goal. Prelaunch, which took place in late 1989, witnessed France extract German commitment to monetary union in favor of German reunification. The same year, Jacques Delor, filed a report introducing European Monetary unification in three stages. It comprised of creation of institutions like European System of Central Banks charged with the responsibility to formulate and implement monetary policies. The phases between 1989 and 2002 gave a name to the common currency that was to unify the European states “euro”, which replaced the old currency unit, the ecu. The institution laid down steps to accomplish monetary unification first of which was abolishing exchange controls that saw capital completely liberalized in European Economic Community on July 1, 1990.
On 7 February 1992, leaders from different European countries signed the Maastricht Treaty with the aim of creating a single common currency but without United Kingdom participating by January 1999. Having the treaty approved proved a challenge since countries such as Germany, France, and Denmark were reluctant (Evgeny, 159). Another attempt derived from Stage II of Delor’s report that led to the creation of European Monetary Institute in 1994 that replaced European Monetary Cooperation Fund with Alexander Lamfalussy as the first president. After sometime, there rose a pool of disagreements that led to adoption of euro as new currency on December 1995 doing away with the name ecu previously used as the accounting currency. Theo Wagel suggested the name. He was by then the German’s finance minister. Date 1 January 1999 was set for the launch of the currency name. With the launch of euro in the European Union, credit institutions were able to process real-time payments. This supposedly helped in serving monetary policy needs of Euro system as well as harmonizing business practices in the EU and promoting money market integration(Gertrude and Peter, 2003:13). Owing to the total number of states, the Euro bloc designed and produced new 7.4 billion notes and 38.2 billion coins for issuance to consumers and business operators on 1 January 2002. This attempt displayed some obsolete results with tasks set to educate European people on the new currency and finally on 15 December 2001 banks commenced exchanging euro starter kits. As a matter of encouraging continuous effectiveness and integration of European currency, banks all over Euro zone, offered same high quality services, interfaces, and single price structure irrespective of their location. Such policies facilitated unification of currency across Europe as banks and other financial institutions operate under similar conditions. In the wake of ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Monetary Unification in Europe Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1438569-critically-examine-the-attempts-of-europe-in
(Monetary Unification in Europe Essay Example | Topics and Well Written Essays - 1750 Words)
https://studentshare.org/macro-microeconomics/1438569-critically-examine-the-attempts-of-europe-in.
“Monetary Unification in Europe Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1438569-critically-examine-the-attempts-of-europe-in.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Monetary Unification in Europe

The Monetary and Fiscal Policy in the UK

...An analysis of monetary and fiscal policy in UK One of the primary functions of a government is to attempt to manage its country’s economy thereby achieving current key financial objectives. These key objectives include keeping the rate of inflation low by maintaining price stability, maintaining low unemployment figures, promoting high economic growth and keeping a balance in international trade. These four objectives are formed by utilizing monetary, fiscal and supply-side policy tools which, in turn, control five types of taxes (Income, VAT, Insurance, Corporate and Excise). The government’s fiscal policies dictate the amount of taxes paid, by whom and to whom; as well as the redistribution of those monies. Economic growth...
13 Pages (3250 words) Case Study

Catholic Church in Sixteenth-Century Europe

he mournful words of the Pontiff at that time, as he lay on his deathbed in 1559, clearly spell out the darkest moments of the Catholic Church. "From the time of St. Peter there has not been a pontificate so unfortunate as mine. How I regret the past! Pray for me." (Pope Paul IV). The erosion of its bastion in Europe necessitated action from the Catholic Church to stabilize and maintain its presence in Europe. (1
The age of the Reformation gave rise to the possibility of several national churches springing up in place of the Catholic Church. The prior attempts of reform, termed as heresy, and schism by the Catholic Church had failed, but the Reformist movement was not only proving a divisive force to Christendom in Europe but...
9 Pages (2250 words) Assignment

The Soccer Industry in Europe

...WAGE CAPPING IN EUROPEAN SOCCER I) Introduction International football has blossomed into a multi-billion dollar industry. Its tag ‘the world’s most popular sport’ is suitably vindicated by the huge number of people who play and view the game. In 2002, Economist Stefan Szymanki at Imperial College, London, put the value of worldwide soccer industry at £150 billion ($ 216 billion). Football’s simplicity is its strength that allows anyone to play the game, and leaves open the challenge of winning to any club or country. Europe, one among the 3 truly football crazy continents, easily leads Latin America and Africa as the best in the sport (http://www.economist.com/surveys/displayStory.cfm?story_id=1142861). II. Definition of Wage Caps...
13 Pages (3250 words) Assignment

Monetary Policy and its Effects on Stock Markets

...Monetary Policy and its Effects on Stock Markets TOPIC PAGE NO Introduction 01 2. The Monetary Policy 01 3. Research Methodology 02 4. The Effects of Monetary Policy on Stock Markets 03 5. Conclusion 08 6. References 10 Introduction. Catastrophe of 1987 – On October 19, 1987 the stock market alongwith the associated futures and options market crashed, with the S&P 500 stock market index falling about 20 per cent. Allthough the markets recovered quickly after this crash, it was the effort of the Federal Reserve which restored the confidence of the investors in the U.S. stock market. In the following study, we will ascertain the importance of the Monetary Policy and its effect on the stock markets. The Monetary...
6 Pages (1500 words) Research Paper

Competitive Position of General Motors Europe

...Executive summary Due to changes in the macro-environment in Europe, the auto industry experienced upheaval. Competition was intensified due to several factors which prompted General Motors (Europe) to take initiatives. They were forced to replace their policy of mass production and tried several methods to recover like alliances and restructuring, cost reduction and layoffs. They lost their position in the auto industry as they failed to recognize the opportunities that the market presented and this allowed the Asian manufacturers to surge ahead. Finally to improve performance, they decided to integrate functions and shift production to low-cost locations. With dignity, they proposed to lay off a sizeable number of employees against...
8 Pages (2000 words) Case Study

The Differences in the Advertising Practices in Europe and USA

...Introduction Background of the study: This report is a research proposal for detailed study of the differences in the advertising practices in Europe and USA. Advertising is one of the big industries in many countries. It is an industry where business, creativity, culture and many other human aspects meet together. This research work will focus entirely on the advertising industry in Europe and US. The main reason for the differences in advertising practices in US and Europe is the differences in the culture and government regulations of the two countries. The advertising practices in these countries follow a global pattern. “Advertisers of the leading brands of consumer goods were surveyed in Great Britain, Denmark, Finland, Sweden...
11 Pages (2750 words) Research Proposal

Insolvent Corporates Turnaround Success in Europe under Existing Insolvency Legislation

A study of the companies that have experienced insolvency and of those that have undergone restructuring along with those that have suffered due to stringent laws would help to formulate the policies for the future. Hence it has been proposed to collect such data through interviews of the company representatives along with the agents that are handling turnaround. Secondary data is available on different countries and along with the primary data collected it would be demonstrated that the right framework for the insolvency legislation could save any economy from the downside. The ethical considerations have been taken into account and the implications of the study have been ascertained.

To promote corporate rescue bankru...
11 Pages (2750 words) Thesis

Why Was Napoleon Successful in His Bid to Dominate Europe

Napoleon’s strategic styles and unique approach of governance have been used in different ways by rulers across the world not only to keep the civilians of their respective nations under their control but at the same time, his strategic approaches proved to be sources of great inspiration for all those leaders who wished to receive an upper hand over the existing governing systems of other nations. It has always been a matter of great surprise for diplomats, politicians and strategy makers across the world to date that how within such a short period of time and at such a small age he has been able to receive such a huge rate of success. The same note of surprise and respect has explicitly been reflected Georges Lefebvre&rsqu...
11 Pages (2750 words) Article

Nationalism and Identity in Europe

...Nationalism and identity in Europe Introduction A large part of Europe is presently facing confrontation. On one side of the scale, human rights activists have gained public recognition and approval, and also, the political and social discussions directed at ensuring increased protection of human rights have gained strength. On the other side of it, there has been a tremendous increase in xenophobia among the indigenous people of Europe, and the racism and aggressive nationalism has reached its apogee in the recent years. Weight on either side of the scale has already increased significantly, and if the present trends continue to sustain, Europe can be exposed to innumerable threats and risks in near future. Migration, for Europe...
8 Pages (2000 words) Coursework

What Is The Current Position of Biofuels In Europe

...What Is The Position of Biofuels In Europe Currently? Table of Contents Table of Contents 2 Introduction 3 The Reason for Development of Biofuel in Europe 3 Second Generation of Biofuels & its Benefits to Europe 4 Usefulness of Biotechnology as an Essential Technology to Produce Biofuel 6 Assessment of the Current Position of Biofuels in Europe 7 Conclusion 9 References 10 Bibliography 11 Introduction The requirement of biofuels has been witnessing an increase owing to its use with regard to the transport segment as a reaction to the issue of energy security as well as concerns regarding climate alterations. The rising consciousness with regard to the environmental problems have augmented the degree of emphasis on the production...
7 Pages (1750 words) Term Paper
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 Monetary Unification in Europe for FREE!

Contact Us