The book we are discussing in this essay is called ‘The European Union: Economics, Policy and History’ by Susan Senior Nello. This book takes into account the different disciplines of economics, policy-making and therefore including a great deal of politics, and the history of the institution of the European Union as we know it today. The broad multi-disciplinary perspective makes this a comprehensive book that combines different aspects together making this particularly useful in the current debate about the future of the European Union. The main focus of the book are the policies of the European Union which is the authors’ speciality having worked on various projects for the European Institute in Florence and having advised the European Commission (McGraw – Hill). This book is a good introduction to the on-going debate concerning the progress and developments of the European Economic and Monetary Union. The author does not use a lot of technical terms and if she does they are explained which makes this book perfect as a study-book for students who want to enter this debate and want to be able to carefully structure their arguments. The authors’ main argument is question if the European Economic and Monetary Union is an optimal currency area. Robert A. Mundell is usually seen as the theorist behind the Optimum Currency Area theory. He defines an optimal currency area as “a domain within which exchange rates are fixed.” (177). Susan Senior Nello uses the Optimum Currency Area theory’s criteria whether the European Union is an optimal currency area and addresses what the advantages and disadvantages of being part of a Monetary Union are. The book is logically structured. Chapter one starts with just the plain definitions and bas... ... middle of paper ... ...y Fixed Exchange Rates: Recent Experiences." Introduction to International Economics. New York: Palgrave Macmillan, 2011. 368. Print. Kiss, Elinda Fishman. "Chapter 14 Optimum Currency Area: Euro as a Practical Paradigm." Ed. Dilip K. Ghosh and Mohamed Ariff. Global Financial Markets: Issues and Strategies. Westport, CT: Praeger, 2004. N. pag. Print. Mongelli, Fransesco P. European Economic Andmonetary Integration and the Optimum Currency Area Theory. Rep. no. 302. N.p.: European Communities, 2008. Print. Mundell, Robert A. "A Theory of Optimum Currency Areas." The American Economic Review 51.4 (1961): 657-65. Print. Senior Nello, Susan. "The European Union: Economics, Policy and History - Susan Senior Nello - McGraw-Hill Education." The European Union: Economics, Policy and History - Susan Senior Nello - McGraw-Hill Education. McGraw - Hill, n.d. Web. 03 Mar. 2014.
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
Europe being on the brink of change at the turn of the 20th century is
Sedelmeier, Ulrich. ‘Is europeanisation through conditionality sustainable?: lock-in of institutional change after EU accession’ West European politics, 35(1), 2012, 20-38
Many people would agree that Europe is a continent in which regions identify with each other even if they are not part of the same country. For that reason, as well as others, in 1957 the Treaty of Rome "declared a common European market as a European objective with the aim of increasing economic prosperity and contributing to 'an ever closer union among the peoples of Europe'" (www.euro.ecb.int). Later, in 1986 and then in 1992, the Single European Act and the Treaty of European Union tried to build on the previous treaty to create a system in Europe in which one currency could eventually be used all over the land under the heading of the Economic and Monetary Union. (www.euro.ecb.int) However, the question remains, why would the leaders of various European nations want to create one currency when the rights of national sovereignty have always been an issue for countries all over the world. Why, in 1998 did they create the European Central Bank, and why in "The third stage of EMU... on 1 January 1999, when the exchange rates of the participating currencies were irrevocably set" (www.euro.ecb.int) did eleven, and later twelve, countries link themselves economically in a way that has never been done before?
The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe. The EU has developed a single market through a standardized system of laws that apply in all member states. EU policies aim to ensure the free trade of people, goods, services, and capital, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries and regional development.
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.1
Peterson, J. and Shackleton, M. 2002. The institutions of the European Union. Oxford: Oxford University Press.
Thomassen, J. 2009. The Legitimacy of the European Union after Enlargement. In: Thomassen, J. Eds. The Legitimacy of the European Union after Enlargement. New York: Oxford University Press, pp. 67-86.
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Introduction When it comes to international business transactions, currency exchange is something that needs to be taken into consideration. The topic has been the center of controversy and discussions among governments and economists due to the relationship between currencies and trade, and the impact this relationship has on the economy (Auboin& Ruta, 2012). The main issue is that the exchange rate of currency is volatile, meaning it is constantly changing, which can cause the currency to increase its value or depreciate, which reflects directly on the economy. For countries who maintain a business relationship, fluctuations in currency exchange rates can be critical. For countries such as U.S. and Mexico who maintain a very close relationship, not only because they border, but because of the free trade business relationship they maintain and the strong economic ties that connect the countries (Villareal, 2014).
Thody, P. M. W. 1997.An historical introduction to the European Union. [e-book] London: Routledge. p. 1. Available through: Ebrary http://site.ebrary.com/lib/aberdeenuniv/docDetail.action?docID=10057275 [Accessed: 26 Mar 2014].
“From time to time it is worth reminding ourselves why twenty-seven European nation states have come together voluntarily to form the partnership that is the European Union.” 1
Sarno, L. and Chowdhury, I., 2003. The Behaviour of the Real Exchange Rate: Evidence from an Alternative Price Index. Economic Notes, 32, 295-333.
Daily in the USA about 38 million banknotes of various face value for total amount about 541 million dollars are issued (Facts about USA money).Dollars involve deep consequences both for the USA, and for other countries. Increase of its course relatively reduces the volume of export revenue in dollars, quite often involves more considerable, than change of an exchange rate, falling of the world prices, especially on raw materials. On the contrary, decrease in a dollar rate serves as the powerful tool promoting growth of the American export and a pushing off of competitors of the USA in foreign markets. At the same time import to the USA owing to effect of a rise in prices restrains. Thus, for the USA changes in the exchange rate of dollar anyway bring benefits and advantages.Reduction of leading positions of the USA in world economy is assisted by the international role of dollar which remains the main reserve and settlement means in world monetary system. Foreign currency reserves of the central banks of other countries for 61% consist of dollars, nearly 2/3 calculations in world trade are carried out in dollars; the dollar serves as a measure of value of many important goods (for example: oil) in the world market; in dollars 3/4 international bank crediting is made (Aleksandr Popov). Changes in the exchange rate of dollar involve deep consequences both for the USA, and for other countries. Increase of its course relatively reduces the volume of export revenue in dollars, quite often involves more considerable, than change of an exchange rate, falling of the world prices, especially on raw materials. On the contrary, decrease in a dollar rate serves as the powerful tool promoting growth of the American export and a pushing off...