Chris Giles states, There were 65 central banks from around the world who were surveyed, and those are the reserve managers. So these are the people who actually manage their money, that central bank's hold, in case there are financial crises and they have to have money put aside for certain precautions. And they said that though they still very much like the dollar--and at the moment, about 70 to 80 percent of all the money they hold is in the dollar--in the future, they see they will put more money into European assets rather than dollar assets. (National Public Radio,2005,p.1) There are many reasons that the Euro is becoming more attractive to the investors and to the World's central banks, again Chris Giles states,
* Governmental macroeconomic policies. Analysis Arguments for the Euro The arguments put forth for membership of the "Euro zone" (countries that have adopted the Euro as their currency) are split into two groups: political and economic. A move towards a Federal Europe (Churchill's ideal of a "United States of Europe") that is governed in a similar way as that of the U.S.A. is the primary political argument. A Federal Europe would be governed as a whole with member countries retaining a few powers but losing almost all political sovereignty. It is argued that this reason is one of the driving reasons for the setting up of the Single European Currency.
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.
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.
Euro banknotes and coins entered circulation on 1st January 2002. (http://europa.eu.int/comm/economy_finance/euro/origins/origins_main_en.htm). Euro area financial markets switched to the euro, including foreign exchange, share and bond markets. New euro area government debt was exclusively issued in euro as from that day. "Around 7.8 billion euro notes and 40.4 billion euro coins, together worth 144 billion, were put into general circulation by the central banks of the twelve participating countries of the euro area.
Difficulties of a Single Monetary Policy for a Large Number of Countries I. INTRODUCTION The European Economic and Monetary Union (EMU) and the common currency the euro, was originally promoted as a source for economic growth and as a mechanism to make European markets less fragmented. However, the recent eurozone crisis has shown the complexity surrounding the issue of a single monetary policy for a large number of countries. Recent economic developments in the eurozone have therefore put an emphasis on the question if it is feasible to conduct a monetary policy of “one size fits all." This essay analyses the viability of a single monetary policy conducted by the European Central Bank (ECB) and highlights some of its design failures as well as what may be done to overcome these difficulties.
One of the major causes of the crisis is the common currency – the euro which has weak structural formation. The creation of a currency, the euro, is one of the major parts of the European Union. The German Chancellor Gerhard SchrÖder said in a speech in 1999 that “The introduction of the euro is probably the most important integrating step since the beginning of the unification process.”(Yeager, 30) Therefore, in this essay I would like to study the history of creation of the euro, lessons that the European Union draws from the euro crisis and analyze the future predictions of specialists about the euro. I will use the publication “Economic and monetary union and the euro” by the European Commission as the main source and other credible sources about the euro in my paper. Since the start of the European Coal and Steel Community with the Treaty of Paris in 1950s, the leaders of the European Community have higher ambition to create the new “common currency”.
Available http://uspirg.org/uspirgnewsroom.asp “America Should Reject Big Oil’s Tired Old Tune.” Press Statement: The Wilderness Society. 28 September 2001. Online. Internet. 24 Nov. 2001.
In 1999, the union established the Eurozone as a monetary zone and was enacted in 2002 with the currency of choice named as the Euro. Of the 28 EU members, 18 members belong to Eurozone. The European Central Bank (ECB) was established to regulate the currency as a recognized legal tender in the market (EU, 2014,). This move for a single currency brought with it some benefits and costs to individual countries with some losing and others gaining as identified by relevant literature on the topic. Benefits The move to have a common currency in a common market eliminates the costs of currency conversion and fluctuation of prices owing to nominal exchange rate fluctuations.
Eastman Kodak has realized savings in the millions in transportation and inventory costs by implementing lean logistics. Kodak starting developing lean logistics in 2002 by establishing a cross docks to improve the flow of materials moving from its suppliers to its warehouses. Kodak picked three of its closes suppliers to try the lean logistics out. One main truck would go around to the suppliers and pick up supplies every two days and bring it back to the cross dock where it would be moved to the correct department. This one act has led to a $20 million inventory cost reduction because there is nothing being stored, and the shipping costs are low because they use their own trucks.