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

The Emergence of the Euro as an International Currency - Essay Example

Comments (0) Cite this document
Summary
This essay "The Emergence of the Euro as an International Currency" discusses a noteworthy economic occurrence when a number of autonomous nations agree to a single currency. The formulation of the Euro as a form of currency significantly impacted international exchange since its inception…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91% of users find it useful
The Emergence of the Euro as an International Currency
Read Text Preview

Extract of sample "The Emergence of the Euro as an International Currency"

They introduced the Euro in non-physical electronic form at midnight on 1 January 1999. At that time, the national currencies of participating countries ceased to exist. Nevertheless, they continued as legal tender until new euro notes and coins were introduced on 1 January 2002. The changeover period lasted until 28 February 2002.


The purpose of the Euro was to solidify the European economy as a whole (Gerlach and Svensson 2003). Differences caused by rounding and the use of significant digits made international trade difficult on the subcontinent itself. Plus, the institution of a unified model of exchange augmented trade outside Europe. As a result, the European economy has become stronger both internally and externally.

Compare the performance of the Euro to the U.S. dollar, for instance (Portes et al 1998). From the start, the Euro represented about one and a half times the value of the U.S. dollar. Although it has risen and fallen over the last decade, it has always remained competitive and never sunk below the value of a U.S. dollar.  This indicates a robust global presence on part of the Euro. It will be interesting to observe the impact of the Euro on stabilizing our current global recession. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Emergence of the Euro as an International Currency Essay, n.d.)
The Emergence of the Euro as an International Currency Essay. Retrieved from https://studentshare.org/macro-microeconomics/1564263-euro
(The Emergence of the Euro As an International Currency Essay)
The Emergence of the Euro As an International Currency Essay. https://studentshare.org/macro-microeconomics/1564263-euro.
“The Emergence of the Euro As an International Currency Essay”, n.d. https://studentshare.org/macro-microeconomics/1564263-euro.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Emergence of the Euro as an International Currency

Euro Currency

...). The acceleration of European integration on the one hand, and the rise of neo-liberalism in Europe on the other, have become intertwined inasmuch as the relaunching of Europe went hand in hand with the reconstruction of the post-war order of European capitalism along predominantly neo-liberal lines. The free market has always needed the state for both its emergence and its maintenance. In political economy, the market is not a 'spontaneous order' (Barnard and Scott 2002), but rather a social and political construction, hence, in this sense, as is also stressed by the new institutionalism in economic sociology, the economy is always embedded in society (Barnard and Scott 2002). Euro is defined as a single European accounting currency...
10 Pages (2500 words) Essay

International Currency

... efforts were to break down, with a sharp appreciation of the yen or the yuan, the deflationary impact would be substantial in Japan or China. The other major player, Western Europe with its new euro, is a huge economy somewhat better--but not completely--insulated from the dollar standard. Its foreign trade and international lending is denominated in its home currency, the euro. Traditionally, the European Central Bank does not intervene to keep the euro stable against the dollar and has been more sanguine, and probably too willing to ignore, the deflationary impact of the rise in the euro over the past two years from about US$.85 to US$ 1.17. True, on June 5, it cut its interbank rate sharply down to 2 percent partly in response...
20 Pages (5000 words) Essay

Advantages Of The Euro Currency

... present different impacts on each economy. The greatest advantage of the Euro is that there is regional currency stability due to the fixed exchange rates. The Euro has led to price stability within the EU characterized by low inflationary trends and stable public finances. This has increased the credibility of the Euro due to large currency zone thus stability against the speculation. This credibility is reinforced by a common monetary policy that is governed by the European Central Bank. Currency stability has encouraged trade as there is a reduction in both external and internal currency instability. The single currency eliminated the risks involved in exchange rates making importers and exporters better placed to make accurate growth...
5 Pages (1250 words) Essay

The Emergence of Euro Companies

...The Emergence of Euro Companies as Significant Global Economic Entities Over the Past Few Decades: A Critical Review and Analysis Euro Companies have been well recognized for quite some time, however only in more recent years have they truly become a word of the public, as they have never been more notorious or understood then they are today. This is for many different reasons, but the changing and alteration of the world around us is quite obviously an incredibly key factor in this regards. There are many similarities and differences in between Euro Companies and companies in Canada or the United States for example, however in the more recent years Euro Companies have - quite surprisingly - been almost more profitable than companies...
6 Pages (1500 words) Essay

Should the UK join the Euro currency

... mostly 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 European Monetary Union (EMU). Sweden and UK are the most representative examples of the above phenomenon. Particularly regarding Britain...
39 Pages (9750 words) Essay

International Trade Theory

 Further to this, it is also believed that international trade can bring substantial economic welfare to the countries however still most of the countries do not view it as a favorable thing. Despite having a very promising and bright outlook, international trade has been largely viewed with suspension and it is because of this that governments impose barriers to restrict international trade. There can be many reasons behind this act of imposing restrictions or blocking international trade however there are also benefits on the other side too.

International trade has driven the attention of many of the brilliant minds in economics therefore the origins of the economic theory on international trade owe much to the c...
6 Pages (1500 words) Case Study

The Economic Impact of the Emergence of China and India

...Running Head: [short [institute of affiliation] a. Refine the analysis of the forces and trends you completed for theWeek Two assignment. The Automobile Industry today is becoming increasingly competitive, with the shift in global economies, the continuously rising fuel prices leading to a simultaneous rise in consumer preferences towards fuel efficient cars, the coming of age of Western economies and the emergence of Asian super powers such as India and China. These external environmental factors along with certain significant global issues such as, growing concern for environmental protection, and the trends towards greener and cleaner cities, governmental initiatives to reduce carbon emissions, and issues concerning protection...
10 Pages (2500 words) Assignment

Potential Benefits of International Trade

... Content Outline I. Introduction (a) Definition (b) Background II. The Reason Why Countries Take Part in International Trade (a) Major Commodities in Today’s International Trade and Economic Gains Arising From it (b) Reasons Compelling Countries to Place Restrictions in International Trade III. Conclusion I. Introduction (a) Definition The expression international trade refers to an exchange of commodities across boundaries of nations. Two major terms are used to describe international trade (that’s imports and exports). Imports are services and goods bought from other countries while exports are the services and goods sold to nations or individuals of foreign countries. (b) Background It’s estimated that the international business...
6 Pages (1500 words) Coursework

International Security Studies: Examination

Globalization affects international security in the sense that problems involving terrorism, the environment, religious extremism, weapons of mass destruction, and the economic crises have become more universal and widespread in character (Ivanov “Article”). As a result, these issues pose a greater threat to national and international stability and safety. More lives are now affected by threats to international security; these threats did not seem too ominous before the entry of globalization. Consequently, some extremists justify the use of mass weapons of destruction in order to guarantee their security. And as globalization continues to expand and to grow bigger as a phenomenon, threats to international security are...
7 Pages (1750 words) Assignment

International Law: Child Soldiers

Using children to fight wars is not only morally abhorrent but very bad very the physical and mental health of the children in question. That is in part why a series of international laws and treaties have come into effect to try to deal with this scourge. But the issue is more complicated than that. While child soldiers are victims of war crimes, they too can also perpetrate serious breaches of the law of armed conflict. Under normal circumstances, individuals who commit such acts, be they combatants or not,2 would be vulnerable to prosecution. However, because children in such situations are victims as well as perpetrators and because of the special protections afforded to children under international law, many have questioned w...
8 Pages (2000 words) Case Study

International Affairs v. Liberalism

As a matter of fact, Hoffman’s statement that “international affairs is the nemesis of liberalism” has a grain of truth in it and this is especially so after the 9/11 incident.
There are two schools of thought or perspectives that are used to view international affairs: liberalism and realism. The study of these two perspectives is significant to the idea posed by Stanley Hoffman because they determine the reasons why international affairs, according to him, does not only see eye-to-eye with liberalism but seems to stand on the opposing side of it.
Liberalism can be defined as having four elements: citizens; the legislature; property rights, and; a market-driven economy (Dunne 186). Realism, on the othe...
6 Pages (1500 words) Assignment

China Faces Pressure over Currency

Making its products cheaper in the US and thus encouraging imbalanced trade. It has been universally agreed that the free-floating Yuan would be significantly worth 15 cents.
Chinese economists feel that the impact has been over-exaggerated and particularly to America from Yuan revaluation. In particular, a stronger Yuan will not reduce the US’s trade deficit as there is a very smart segment of overlap between China and America Production and hence the US will not be able to replace Chinese imports. The consumer will end up paying more for imports from china or Vietnam and this would be like imposing a tax on US consumers.
The World Bank chief also disagrees with the US’s suggestion on China's currency rise a...
9 Pages (2250 words) Assignment

International Business: World Economic Forum and Davos 2010

While each force of globalization is important, the technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking applications possible are now being applied to development, healthcare, and society. Today mobile telephones are more like powerful computers that take care of many of the societal challenges facing both developed and developing countries (Evans, 2010). In Chile, new software enables weather information to farmers who can now make informed decisions on when and how to sow or harvest the crops. However, the fear or ignorance of cloud computing technology could harm the chances of the SMEs becomi...
7 Pages (1750 words) Coursework

Project Management of Beijing Capital International Airport T3 Terminal

Some stakeholders can be both driving (positive) and restraining (negative) forces, it depends on how the project will meet their interests. These forces are marked by a dotted line. If changes happen, and the project won’t meet the interests of some of these stakeholders, a vector of the corresponding force will be changed onto the opposite and the force will move onto the opposite part of the diagram.

Each half of the diagram (left and right) is divided into three parts – Low, Medium and High. It defines the size of a force vector and indicates the importance (power) of a given force. Short forces have a low level of power.

Civil Aviation Administration of China (CAAC) – undoubtedly advanc...
7 Pages (1750 words) Assignment

Challenges Faced by International Media Corporations Operating in China

Considering Geert Hofstede’s cultural dimensions, China exhibits a low ranking in individualism meaning that they observe a collectivist culture dictated by the communist rule (Hofsted, 1996). In this type of society, loyalty is considered to be of great importance, a factor that has made it difficult for foreign companies to invest freely in the country. This essay is a critical evaluation of challenges that international media corporations operating in the country face.

The attempts by foreign investments to penetrate China’s market have proven futile in the past especially due to the conservative nature of the inhabitants. China is a strict country when it comes to culture and cultural interaction. For ex...
7 Pages (1750 words) Coursework
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 The Emergence of the Euro as an International Currency for FREE!

Contact Us