The Euro
To most people in the United States hearing the word Euro brings about blank stares. Ask this same question in England or another European country and it means bringing Europe together under one common currency. The Euro can be defined as the common monetary system by which the participating members of the European Community will trade. Eleven countries Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy will comprise the European Economic Monetary Union that will set a side their national currency and adopt the Euro in 2002. A new National bank, based in Frankfurt Germany, will be constructed and the interest rates that control the economies of these nations will be in the hands of this new system. It is indeed a great experiment, being masterminded in Frankfurt, one that will be felt through out Europe as well as the rest of the world.1The combined countries, now more commonly referred to as Euroland, will fall under one national bank. This bank, the European Central Bank, will determine the economic fate of the entire "Union". The merging of eleven currencies is a daunting and somewhat lethal task. The ECB is comprised o
There are five major concerns that will have to be addressed. This way, national views of one country will not effect the entire economic view of the European Economic Monetary Union. For example, the Euro check will be exchangeable into any of the currencies within the "eurozone". 3 (See graphs 1-3 below) Graph 1 Graph 2 Graph 3 (Graphs copied from AMUE Euro Newsletter No. The European Economic Union will be the most ambitious economic projects undertaken in this century, but it does have its faults. But does one interest rate in Ireland function the same in Germany? When one economic country is in economic crises how will the ECB react? These are just a few of the many economic problems that will have to be solved, as the day of the Euro becomes closer and closer. 3 When imports are worked into the equation the United States holds 19% compared to 16% of the EMU and 7% of Japan. The stability and strength will have to come from the erouzone and its market, proving the stability of this newfound union. What the out come will be and what effects it will have towards the economic world can only be speculated. There is no voting record nor will there be published minutes of the meeting that take place. With the widespread use of the American dollar as an international currency and for holding reserves, it is unlikely that the Euro will replace it as the new international currency anytime soon. 1 When BBC reporter Steve Levinson confronted him about this in Frankfurt Germany Wim repliedI reconcile these two positions by not defining openness as publishing everything that will be available, but by defining openness as explaining every decision, every consideration. Traveling in Europe will be less of a hassle in regards to exchanging currency. It becomes macroeconomics versus microeconomics.
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Acceptance Essays
