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America and the Euro

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America and the Euro

America’s relationship with Europe has long been the cornerstone of our economic and foreign policy. Today, America’s fortunes remain fundamentally linked with Europe’s. Needless to say, we have a security interest in what happens in Europe, but we also have a vital economic stake. Together, the United States and the EU produce close to half of all goods and services in the world and account for over half of all world trade. While we put great attention on emerging markets throughout the world, one cannot overstate the importance of our commercial relationship. The EU is by far our largest commercial partner. The annual value of U.S. and EU trade exceeds $250 billion. Europe is twice as large a market for American companies as Canada and Japan combined. The U.S. and the EU are also the largest investors in each other’s markets. Europe is also the United States most important partner in supporting the global trading system.

The launch of the Economic and Monetary Union (EMU) is part of a broader process of enlarging and deepening the European union. EU leaders view the EMU as the next historic step in a long process of European integration and essential to ensuring a global role for Europe in the future. This drive toward a unified European currency has long been on the minds of Europeans, ever since a European commission conceived it in 1957.

Economic strength, stability, and vitality in Europe is in the United States national interests. A strong European economy will benefit U.S. exports and American economic interests in general. Though business will have to deal with certain transitions and changes attendant to the adoption of a single currency. The U.S. has a strong interest in Europe’s futur...

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...html (February 22, 2001)

Barber, Lionel. “The Euro’s Progress.” Europe: Magazine of the European Union, April 2000

European Central Bank. Euro Foreign Exchange Reference Rates. March 14, 2001. Available: http://www.ecb.int/index.html (March 14, 2001)

European Commission. Convergence Criteria for European Monetary Union (EMU). March 25,1998. Available: http://www.bloomberg.com/emu/eurocomm.html (February 26, 2001)

Gros, Daniel. The Euro: Strong economy, weak currency. September 19, 2000. Available: http://www.ceps.be/Commentary/September%2000/gros.htm (February 3, 2001)

Guttman, Robert J. “Governor of the Central Bank of Finland Matti Vanhala: Interview” Europe: Magazine of the European Union, April 2000

President Romano Prodi. President’s Welcome. September 1999. Available: http://www.eurunion.org/infores/euguide/president.htm (February 26, 2001)

In this essay, the author

  • Explains that the 1992 maastricht treaty made it constitutionally possible to achieve economic and monetary union (emu) and developed the union's inherent political dimension through the new common foreign and security policy.
  • Explains that the european union is a unique, treaty-based, institutional framework that defines and manages economic and political cooperation among its fifteen european member countries.
  • Explains that denmark, scotland, and the uk became full members of the eec in 1973, greece was admitted without complication in 1981, spain and portugal in 1986, austria, finland and sweden united with the member countries in 1995.
  • Explains that denmark, sweden, and the united kingdom have the opportunity to be linked to the euro under the new exchange rate mechanism (erm).
  • Opines that the u.s. must adapt to the introduction of the euro, but its adjustment is minor in comparison with the changes and challenges facing emu member states.
  • Explains that us companies exporting to europe have enormous potential benefits, but there are both advantages and disadvantages for american companies doing business with the euro.
  • Explains ambassador hugo paemen, the european union and the united states in the new millennium.
  • Explains that america's fortunes remain fundamentally linked to europe. the launch of the economic and monetary union (emu) is part of a broader process of european integration.
  • Explains that the european union is the latest stage in a process of integration begun in the 1950's by six countries - france, germany, italy, the netherlands, belgium and luxembourg.
  • Explains the governing system of the european union, which is based on international treaties among sovereign nations rather than a constitution.
  • Explains that the european council adopted the name "euro" in madrid in december 1995. the symbol for the euro is an e with two clearly marked, horizontal parallel lines across it.
  • Explains that a three-stage process was launched in 1990 as eu member states prepared for the single market aimed at boosting cross-border business activity.
  • Explains that the second stage set up the european monetary institute (emi) in frankfurt to pave the way for the ecb. the third stage begins the final transition to full economic
  • Explains that the euro became the single currency for eleven eu member states from january 1, 1999 to december 1, 2001.
  • Explains that the euro will change the financial landscape by eliminating the currency risk that led banks and investors to keep most of their money at home. the large euro zone will integrate the national financial markets, leading to higher efficiency in the allocation of capital in europe.
  • Opines that a transparent market allows everything to be appraised in the single currency, eliminating exchange risk among participating countries.
  • Argues that the benefits of reduced transaction costs, exchange rate instability, and greater price transparency outweigh the losses from introducing the new currency and possible macroeconomic adjustment costs.
  • Analyzes how peter gwin's article entitled americans in euroland emphasizes this advantage.
  • Explains that the single currency will make it easier to do business in europe, but us companies still find many obstacles. the dollar is the world's premier medium of illicit exchange.
  • Explains why the euro's weakness is due to the absence of structural reforms in the u.s.
  • Opines that the eu and the u.s. can provide the leadership needed to address global and regional challenges in an increasingly interdependent world.
  • Explains the european central bank's euro foreign exchange reference rates, which was published on march 14, 2001.
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  • Is the European Monetary Union a disaster? ? Discuss
    analytical essay
    Abstract This essay evaluates the development of the EMU; a system that only came into effect three years ago. Through the lack of recent literature most of the evidence are derived from articles of various sources. The essay takes into consideration that the EMU is embedded in a generally declining world economy.

    In this essay, the author

    • Evaluates the development of the emu, a system that only came into effect three years ago.
    • Analyzes how the essay illustrates why the emu did not reach their targeted goals immediately and points out shortcomings in the maastricht treaty that should be reformed.
    • Explains that a european monetary union has been part of the european union's aims for over thirty years. the emu was put into full effect in 2002.
    • Explains that the oxford dictionary defines the term ‘disaster’ as a ‘complete failure’. they outline the intentions for the introduction of the euro and the advantages economist and member states had hoped to gain from it.
    • Explains that the treaties of rome, which established the european economic community in 1957, were the cornerstones for the coherent currency.
    • Opines that the benefits of a single currency include no distortion in production and investments through exchange rate fluctuations.
    • Argues that the emu will cause the eu's greatest setback in history. the monetary union does not emerge simultaneously with a political union.
    • Opines that a strong euro would cheapen the eu's imports, whereas weaker currencies would lower prices of european exports and make european goods more competitive.
    • Explains that the ecb defines price stability as a year-on-year increase in the harmonised index of consumer prices for the euro area.
    • Explains that the euro-area's economic growth performance has been unsatisfactory, with growth rates ranging from 3% in italy and germany to 10% in ireland.
    • Analyzes how the euro declined steadily since 1995, but in 2002, the rate began to increase again. the exchange rate course of 2003 has recovered some of euro's former depresiion but still has its flaws.
    • Explains that the sgp highlighted the politicised nature of the emu, as both france and germany saw it as an opportunity to demonstrate their hegemony.
    • Analyzes whether the maastricht treaty is aim and function adequate.
    • Argues that the european central bank, as a new institution created by the maastricht treaty, takes the coordinating role of this economic and monetary union.
    • Explains that the ecb governing council has repeatedly had to contend with the accusation of a lack of transparency. the two-pillar strategy makes heavy demands on the euro system's communication policy.
    • Explains that the ecb council follows a two-pillar strategy and judges inflation expectations over the medium term.
    • Opines that the introduction of the euro has had far-reaching implications for the financial markets. however, a complete integration of financial systems is still hindered by regulatory, tax and legal obstacles.
    • Explains how the 2002 cash changeover worked without a hitch, with banks supplied with notes and coins in advance, and banks in return supplied the retailers with new cash.
    • Explains that the hicp does not cover a broad basket of goods. the changeover had given rise to fears of inflation.
    • Opines that the outlook for emu in the medium term depends first and foremost on the enlargement process and the union's ability to cope with it.
    • Analyzes how hankel argues that the test case poland shows how the monetary union without balance mechanisms as exchange rates and transfer services in an disintegrated, through national tariff systems as culture and language borders, compartmentalised, and labour market works.
    • Opines that the emu has enhanced in terms of political and foreign policy, as the euro-area countries are forced to communicate even in an economic basis.
    • Argues that the emu is not without problems, but it isn't a disaster in the sense of failure. its success is yet to be determined.
    • Explains pearsall, j., the concise oxford dictionary, oxford university press.
    • Opines that the euro-illusion, ist europa noch zu retten? rowohlt taschenbuch verlag, hamburg.
    • Explains the european economic- and währungsunion between anspruch and wirklichkeit, peter lang, frankfurt.
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  • Analysis of the Euro
    opinion essay
    Analyzing the process leading up to the euro and the looking at the possible advantages and disadvantages that will result from the new currency are the key issues of this essay. The first section looks at some of the requirements leading up to the euro, including some of the specific fiscal goals required by the EMU regarding prospective members in 1999. The second section looks at some of the economic reasons for European Union countries to adopt the euro, focusing on the elimination of exchange rate fluctuations, increase trade overseas and across borders, and expanding markets for business as some of the advantages of euro currency countries. Price transparency, another advantage of the euro, is the focus for section three. Price transparency is the ability to easily recognize price differences between countries, which was not possible pre-euro. The paper then points on some effects of the euro on American businesses its economy. The updating of financial and accounting IT systems was the main adjustment discussed that U.S. multinationals must deal with. The paper then briefly looks at tourism, and how that industry of Europe is affected by the euro. The paper then looks at the euro introduction from a political standpoint, explaining if the EU goal of “political unity” is actually possible. The essay finally discusses the future of the currency, asking the question “Can the euro survive?”

    In this essay, the author

    • Analyzes the process leading up to the euro and the possible advantages and disadvantages that will result from the new currency.
    • Explains the beginning of the euro as an accepted currency in eleven european countries. the single european act in 1986 symbolized accelerated european integration and the completion of a single european market.
    • Explains that january 1, 2001 was the official release of euro banknotes and coins, and the addition of greece as a member country. the european union, formed in 1946, was started with the overall purpose of one day allowing the free movement of people, goods, services and capital
    • Explains that countries were required to meet specific fiscal goals in the years leading up to 1999, when the euro was accepted as the single currency of the emu.
    • Opines that the creation of the euro will eliminate exchange rate fluctuations, increase trade overseas and across borders, and expand markets for business for those countries adopting it.
    • Opines that the euro will hold a much bigger weight in the world’s currency and may someday become the accepted currency to which commodities such as oil and gold are measured.
    • Explains the advantages of adopting the euro as a currency and the risks of not changing to it.
    • Explains the disadvantages of the euro, such as the cost of updating and changing financial and accounting systems, the training of employees, and the economic shock that countries may feel.
    • Analyzes the impact of the single currency on price transparency on the emu region.
    • Explains that a company's financial system must be able to accomplish two things if it is to fully support its conversion to the euro.
    • Opines that the immediate effects of the euro on american businesses and the economy have been beneficial. stability in the european economy has limited exchange rate fluctuations for u.s. companies.
    • Opines that the single currency should have substantial effects on the industry of tourism.
    • Explains that the single currency is a political project with largely political aims. the emu was agreed upon and formed by the eu.
    • Analyzes how paul tooher looked at the state of europe when the emu decision to release the currency came at a time when continent was struggling with high unemployment and minimal economic growth.
    • Argues that the european union is an attempt to deepen the political cooperation and global power of its union, almost in a way by which it will model the us.
    • Opines that if the economy of the eu is thriving, the opportunity for reduced tension and possible political harmony is enhanced.
    • Opines that a long-term stabilized economy resulting from the euro is the hope of many europeans, but that can only happen through time.
    • Cites ratz, tamara, and laszlo puczco. the future of tourism in the european monetary union.
    • Explains that systems modelling ltd. website. "systems modeling euro implications." 6 nov. 2002.
    • Explains szabo, stephen f., "the euro and the emergence of a new europe."
    • Explains tooher, paul. "europe counts on new currency to form a more perfect union."
    • Explains that the economic and monetary union (emu) includes the eu countries (11 countries) which are to adopt the single currency: the euro.
    • Describes the 15 european countries that decided to participate in the integration project proposed by the treaties of rome and maastricht.
    • Explains gdp (gross domestic product) is the monetary value of all the goods and services produced by an economy over a specified period.
    • Explains procurement as the act of getting possession of something by particular care and effort (merriam-webster online).
    • Describes ramification as something produced by a cause or necessarily following from conditions (merriam-webster online).
    • Explains that the single european act of 1986, signed in luxembourg and the hague and came into force on 1 july 1987, was the first modification of the fundational treaties of european communities.
    • Explains transparency as having the property of transmitting light without appreciable scattering so that bodies lying beyond are seen clearly.
    • Explains the treaty of rome, ratified in 1957 by the six founding states of the european community. it lays down the bases of a process of european economic integration.
    • Cites caffrey, brian, "euro’s impact on international procurement."
    • Cites szabo, stephen f., "the euro and the emergence of a new europe."
    • Explains tooher, paul, "europe counts on new currency to form a more perfect union."
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  • History of the Euro
    explanatory essay
    Recently in Europe and its neighboring countries, the talk has been about the newly installed euro into the ever- growing European market. The euro has been the new

    In this essay, the author

    • Analyzes how the paper looks into the various aspects of the euro and the progress it has made since its initiation.
    • Opines that the euro has been the new currency in europe and its neighboring countries.
    • Explains the motivation behind the euro, which is to enable a market that more and more looks like one european market.
    • Explains that the european monetary system (ems) was introduced on march 13, 1979. the emi was based on the average behavior of the participating countries.
    • Explains that the goal of eliminating restrictions on the movement of capital between member states was never achieved. they were on their way to forming a monetary union.
    • Explains that the european monetary institute (emi) was a precursor to the proposed european central bank (ecb). the emi monitors the member countries to see if they have met all the qualifications to enter the new union.
    • Opines that the ecu has not devalued against any other member country.
    • Explains that price stability is defined as having a rate of inflation of the inflation rate.
    • Describes the definition of a government deficit that is not "excessive".
    • Explains that the emi was translated into a european central bank (ecb) and some countries converted existing debt to euros during the three-year transition period.
    • Explains that there are eight different coins that have been circulated, in denominations of €2, €1, 50 cent, 20 cent and 10 cent. the common side of the coin is for each country's symbol of choice.
    • Explains that there are seven different notes that have been circulated. they are in denominations of €500, €200, and €100. the notes are different from the coins in that both sides are common.
    • Explains that the euro is going to have a profound effect on the european economy along with the global economy.
    • Explains the effects of the euro on competition. organizations who started early with their changes had a competitive advantage because they could avoid currency exchange fees and avoid the risk of currency swap positions.
    • Opines that the introduction of the euro is a quantum leap forwards in european integration and the most profound change in the international monetary system since the bretton woods system in 1973.
    • Explains that the us dollar is the dominant investment currency in the global capital market. the use of international bank assets and liabilities is similar to the breakup of bonds and notes.
    • Opines that the introduction of the euro in 1999 will spur a fundamental overhaul of europe's bond market. bond yields have been affected as currency risk is eliminated.
    • Opines that the euro is performing a positive transformation for europe's currency regime. many felt that it would present too much confusion and fluctuation.
    • Opines that the euro has many strengths as a single currency, and that it could have positive implications for the global financial system.
    • Explains that the euro has high expectations for success and if these expectations are not met, the idea of a single currency will be bashed.
    • Explains that with the introduction of the euro, the international financial system is now divided into two principal zones, which raises questions of substance regarding movements in the euro-dollar exchange rate.
    • Explains that the dollar zone and the euro zone are both huge and essentially closed; most trade is within the zone itself. since currency movements have less impact internally, ities may have a tendency towards neglect.
    • Opines that the european investment bank is a good example of institutional support for the relatively young currency.
    • Opines that some of the developments suggested above might put upward pressure on the euro, but there are forces working in the opposite direction as well.
    • Explains that the pursuit of domestic price stability by the ecb means that it cannot at the same time pursue some other objective, such as exchange rate stabilization.
    • Opines that the introduction of the euro raises further questions about international financial cooperation.
    • Opines that the answer to many of these questions is far off in the future. international financial cooperation must take place on a truly global scale with the involvement of all countries of systemic significance.
    • Opines that the untested european money has yet to establish itself as a quality brand among world currencies.
    • Explains that the euro traded as $1.17 and then started a long slide. it hit an 83-cent low last year and recently hovered around 90 cents.
    • Explains that the u.s. economy has been growing faster than europe's since the last american recession ended in 1991 and the trend has made investments in the us more attractive.
    • Explains that the dollar is the currency of an monolingual economy with a strong government and an authoritative central bank under tried and trusted federal reserve chairman mr. alan greenspan.
    • Explains that the european central bank (ecb) is independent of any political authority and free to make monetary policy as it sees fit.
    • Opines that duisenberg has yet to get rid of a perception among u.s. investors that he focuses too much on price stability and not enough on growth.
    • Explains that u.s. doubts about euro stability were reflected in fortune magazine analysis, which described the complex system of running the eu as a "precarious way to run the world's second-largest economy".
    • Opines that the euro zone remains a patchwork of different politics and cultures.
    • Explains mr. greenspan's forecast that the dollar would remain a more attractive international currency.
    • Explains that the economist disputed his conclusions about productivity during the 1990s, arguing that if one takes gdp per hour worked, american productivity rose by an annual average of 1.6% in the 10 years to 2000, while euro-zone productivity increased by 1.9%.
    • Explains that mr. greenspan blamed the pro-labor culture of europe as one of the reasons why european firms could not downsize and increase productivity as readily as in the u.s.
    • Explains that regulatory arguments and legal differences across borders have hampered equity trading and securities lending, all promoting one to conclude initial expectations that the euro would replace the dollar were "probably overstated."
    • Explains that the dollar has been sustained in value by the preference of institutional investors in the euro zone for dividing their portfolios between europe and the us. this interest benefits both currencies as well as investors.
    • Explains that a euro-denominated bond market rivaling that of the u.s. has already emerged, despite the financial-market disruption caused by the events of 11 september.
    • Opines that if it helps make europe a stronger, more competitive economy with takeovers and mergers, it will benefit everyone and give the u.s.
    • Explains that the ecb has cut the euro region growth forecast for next year from a high of 3.1 per cent.
    • Opines that the euro will expand its reach throughout europe and solidify itself as a universal currency.
    • Explains that there are currently 18 applicants working toward membership into euroland, including bulgaria, latvia, lithuania, romania, slovakia, estonia, hungary, poland, slovenia, the czech republic, cyprus, malta, turkey, croatia, ukraine, russia, georgia, and switzerland.
    • Opines that the euro hopes to create the potential and future of a currency unlike any other. but before this reality is realized, confidence needs to be achieved outside the boundaries of euroland.
    • Opines that only time will tell whether or not the euro progresses as planned.
    • Describes the process of bank marriage, whereby a merger is accomplished in order to create stronger and more profitable firms.
    • Describes the bretton wood agreement, which set a fixed exchange rate for major currencies and established the imf.
    • Describes the economic and monetary union (emu) as the latest effort to unite europe economically and politically since the collapse of bretton woods system in the early 1970's.
    • Explains that the euro is divided into 100 cents and replaces the european currency unit of ecu.
    • Explains eurodollars are american dollars held by foreign institutions outside the united states, usually a bank in europe.
    • Explains the term euroland, which is used to describe the 11 countries that use the euro currency.
    • Explains that the ecb is the european form of the federal reserve in the u.s.
    • Explains exchange rate as the ratio at which the principal unit of two currencies may be traded.
    • Explains that the international monetary fund (imf) is an international organization of 183 member countries, established to promote international monetary cooperation, exchange stability, and orderly exchange arrangement, to foster economic growth and high levels of employment.
    • Explains the maastricht treaty, which officially created the eu, strengthened the parliament, called for the creation of an eu central bank (by 1999) and a common currency.
    • Explains that secretary of state george c. marshall first called for american assistance in restoring the economic infrastructure of europe. the truman administration proposed legislation to restore european agricultural and industrial productivity.
    • Describes the monetary- of or relating to money or to the mechanisms by which it is supplied to and circulate in the economy.
    • Explains the term securitization, which is used to consolidate mortgage loans and sell securities for resale to the public.
    • Explains that the stability and growth pact monitors and assesses the economic policies of member states, with special emphasis on the budgetary position.
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  • The Adoption of the Euro Case: Sweden and England
    opinion essay
    Europe consists of several sovereign countries which use their own currency prior to the creation of the European Union in 1993. The EU has been built through several binding treaties and laws that harmonize European states when it comes to political issues and economic issues. It was until the Maastricht Treaty of 1999 that established a single currency known as the euro. The euro’s purpose is to have a single currency in Europe, similar to a single currency in the United States. Since Europe’s countries are closely tied together, the goal of the currency is to trade easier with one another, as well as sharing fiscal and exchange rates. Currently, there are roughly about 17 members from the EU who uses the euro as their currency and it is known that once a country joins the Union, it must quickly adopt to use the euro to enter the market for goods, services, and trade among member states. This adoption of a single currency has been the talk for a decade as well as in literature and scholarly articles. Throughout the course of this paper, it would look at two countries that refuse to adopt the euro: Sweden and the United Kingdom. The paper would answer questions that surround the euro ever since it was created, such as national identity issues of both countries, how it affects political leadership, and the economic costs and benefits of adopting the euro. Ultimately, it would answer a research topic whether the euro will overall rise or fall in Europe.

    In this essay, the author

    • Explains that the european union was built through several binding treaties and laws that harmonized european states when it comes to political issues and economic issues.
    • Explains that many scholars find the adoption of the euro as a means of saving their economic growth. others perceive it as an easy road for facilitating trade and secure their bank’s assets.
    • Explains that the referendum of the eu is for member states to uphold their currency and adopt the euro. only sweden and britain (along with denmark) do not comply with this wish.
    • Explains that sweden joined the european union in 1995, but did not use the euro. it became problematic for other countries, even their own political party, to convince the state to change their currency prior to joining the eu.
    • Explains that sweden was reluctant to join the eurozone, but business leaders predicted that the euro would bring more foreign investments.
    • Analyzes how a study developed by james reade and ulrich volz panned out the economic costs and benefits of joining the euro.
    • Illustrates that sweden's interest rates, along with the euro appear to move much more closely together. even when sweden experienced a severe banking crisis in the early 1990s, sweden remained in tow with europe.
    • Concludes that monetary independence in sweden is just an illusion whether or not they abstain from the euro.
    • Explains that swedish voters recognized serious concerns over the sovereign debt crises that many eurozone members are currently dealing with. svensen states that portugal was the first member state which reached the 3% limit for budget deficit.
    • Opines that if the nations in the eurozone still had their own currencies it would quickly restore competitiveness, but they are in for an extended period of unemployment and slow deflation.
    • Opines that sweden could change its currency to the euro in the future, since the debt crisis has shaken its supporters' confidence.
    • Argues that britain's attitude to be an outsider from the eurozone is due to its culture and tradition.
    • Explains that the british don't want to lose the pound due to the strong historical attachments, and their currency alone holds a piece of value.
    • Analyzes how britain perceived the euro as a lesser value than their own currency, which will ultimately result in bankruptcy.
    • Illustrates how the euro itself hinders economic growth in the eu. adopting the euro would drag them back and push them towards a devastating depression.
    • Opines that britain could join the eurozone if all the countries that use it are equally economically strong. but does it fix the debt crisis other countries are currently having?
    • Opines that the euro represents a political union from neighboring states, as well as partnership for the future.
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  • Integration in the EU and Monetary Policy
    explanatory essay
    Integration in the EU and Monetary Policy The creation of the European Union (EU) is a great political and economic feat. For it is the ultimate sign of cooperation between nations that had been in constant rivalry before. Nevertheless, the ideals of such a union cannot stand alone without having a strong foundation and continuos rational decision making by all of the actors involved.

    In this essay, the author

    • Opines that the creation of the european union (eu) is a great political and economic feat. it is the ultimate sign of cooperation between nations that had been in constant rivalry.
    • Explains that the dream of a unified europe emerged from the desire to guarantee peace.
    • States that mishkin, frederic s., the economics of money, banking, and financial markets, sixth edition.
    • Explains krugman, paul and obstfeld, maurice. international economics. reading, mass.: addison wesley longman.
    • Explains that the maastricht treaty of 1991 set macroeconomic goals, or convergence requirements, for the countries to follow.
    • Explains that the "eurosystem" refers to the ecb and the fifteen national central banks (ncbs) of eu members.
    • Explains krugman, paul and obstfeld, maurice. international economics. reading, mass.
    • Explains that it is necessary to measure the costs and benefits of joining a fixed exchange rate, which is related to how well integrated economies are and the "monetary efficiency gain for the joining country."
    • Explains van aarle, bas, engwerda, and plasmanas's "monetary and fiscal policy interaction in the emu: a dynamic game approach."
    • Explains that the labor market is one of the least flexible inputs needed for economic integration in europe.
    • Explains that there has been a considerate increase in capital migration within the eu because of the removal of previews capital movement restrictions.
    • Cites the economist's "survey: european business and the euro - work in progress".
    • Cites belaisch, agnes, laura kodres, joaquim levy, and angel ubide. "euro-area banking at the crossroads" international monetary fund.
    • Explains that in the eu, fiscal policy is not centralized, rather it is decided within each country individually.
    • Explains cangiano, marco, and eric mottu's "will fiscal policy be effective under emu?" international monetary fund.
    • Analyzes how a study by the bank of italy found that national information, rather than only area-wide variables, improves monetary policy decisions.
    • Describes angelini, paolo, del giovane and terlizzase, saniele. "monetary policy rules for the area:
    • Explains that a study by the university of leuven addresses the issue of divergent interests between countries and the decision-making process when determining monetary policy at the ecb.
    • Cites aksoy, yunus, paul de grauwe, and hans dewachter. "do asymmetries matter for european monetary policy?"
    • Concludes that political and economic integration should be the ultimate goals of the eu.
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  • The Euro Versus the Dollar
    argumentative essay
    “The introduction of the euro will represent the most dramatic change in the international monetary system since President Nixon took the dollar off gold in 1971 [and when] the era of flexible exchange rates began…the euro is likely to challenge the position of the dollar [and hence] this may be the most important event in the history of the international monetary system since the dollar took over from the pound the role of dominant currency in World War I” (Mussa 2002).

    In this essay, the author

    • Explains that the euro has been a huge success internationally as well as within europe. it became the most widely used currency for international bond flotation during its first year.
    • Argues that the introduction of the euro will represent the most dramatic change in the international monetary system since president nixon took the dollar off gold in 1971.
    • Explains that the dollar has reigned supreme despite prolonged periods of poor economic performance by the united states.
    • Opines that the eu would have to integrate its money and capital markets to realize the full potential of its new currency.
    • Concludes that the euro poses a significant threat to the u.s. dollar.
    1321 words
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  • European Union Policies and the Czech Republic
    explanatory essay
    Webb, J., Laca, P., Chamonikolas, K., & Skolimowski, P. (2011). Joining the Euro: What's the Hurry?. Bloomberg Businessweek, (4212), 10-14. Retrieved October 11, 2011, from EBSCOhost.

    In this essay, the author

    • Explains the activities of the european union - economic and monetary affairs.
    • Explains that czechoslovakia has gone through two major transformations in less than eleven years.
    • Quotes bilefsky, castle, and chamonikolas on the czech government's austerity measures.
    • Explains that czechoslovakia's final holdout sends mixed signals on his stance toward the lisbon pact.
    • Explains the czech republic's integration into the eu – monetary and economic policy.
    2572 words
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  • America is Not Benefited by the Fall of the Euro
    analytical essay
    It is no huge secret as to the cause of the weakness of the Euro in relation to the dollar. The American economy is developing successfully, while the European, especially that of Germany and Italy, at best running in place. In addition, in Europe, as noted recently in the findings of the auditing company, Price Waterhouse Coopers, disproportions are growing between the quickly developing countries of the European periphery- such as Finland, Portugal and Ireland- and the slowly growing economies of the largest part of the Euro. To the former not only Italy and Germany apply but France as well.

    In this essay, the author

    • Analyzes how rosenberg emphasized the probability that in 1999 the value of the euro may fall to 99 cents, citing the fall in its value to $1.05 in the middle of last week.
    • Analyzes how the cheapening of the euro was greeted with ambiguity in the united states. the more expensive the dollar is, the less competitive become their products in continental europe.
    • Explains the reason for the weakness of the euro in relation to the dollar. the american economy is developing successfully, while the european, especially germany and italy, are running in place.
    • Opines that the increase in the italian budget deficit is a worrisome indicator of the weakening of fiscal discipline in europe.
    • Opines that euro optimists hope that the devaluing of the euro will sooner or later receive a reaction from the european central bank.
    399 words
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  • Wolf in Sheep's Clothing?: Assessing the Success and Sustainability of Euroskepticism in Germany
    explanatory essay
    The crisis has led to an increase in negative stereotyping within EU countries – the hardworking and self-disciplined North against the lazy South. In particular, there is growing resentment among German taxpayers at the thought of bailing out their Greek neighbors from their debts. In Germany, there exists a growing nostalgia for the old currency, the Deutschemark. According to Cris Short, many see the European Monetary Union (EMU) as a “transfer union” where money is transferred from the prudent northern European countries to the profligate South. The currency that was designed to unite Europe has now intensified the cultural differences that exist within EU member states and divided the continent.

    In this essay, the author

    • Explains that euroskepticism is no longer exclusively british. the eurozone crisis has exacerbated the growing distrust of europe.
    • Explains paul taggart and aleks szczerbiak's definition of euroskepticism, which distinguishes between hard and soft euroskeptic.
    • Explains that eurobarometer polls have recorded a slow and steady decline in europeans’ trust of eu institutions. iceland is an anomaly because it is the only prospective member state that has seen an increase in support for eu membership.
    • Explains that germany isn't known for its euroskepticism, citing charles lees and cris short. the eurozone crisis has led to a growing negative stereotyping of the hardworking and self-disciplined north against the lazy south
    1340 words
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  • How Did The European Union Outweigh The Costs
    explanatory essay
    The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea

    In this essay, the author

    • Explains that the benefits of the european union outweigh the costs. since the end of world war ii, countries in the eu have been helped economically, politically, and culturally.
    • Explains how the european union has positively affected its country's politics through the united kingdom and france.
    • Opines that the european union has preserved each countries culture by not making them change the language of countries and not requiring citizens to change their lifestyle.
    • Explains that the european union was a great way to help europe regain what it lost in the world. it remains an economic powerhouse that can make peace to nations that once were enemies while still keeping the culture of countries that give them individual identity.
    393 words
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