Introduction of the Euro
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This paper describes the fiscal impact of the euro since its inception as the common currency of the European Union countries on January 1, 1999. The paper analyzes the foreign exchange and currency flow and how this particular period of currency volatility affected the capital and money markets. The paper also examines the effects it had on the economies of the major countries.
From the Paper:"The European Monetary System (EMS) was established in 1979 to stabilize currency exchange rates among European common market countries, with the intention of eventually establishing a monetary union. The core of the EMS and the engine of stabilization was the Exchange Rate Mechanism (ERM), which was designed to reduce the amount that the currencies of member states could fluctuate against each other, and to stimulate trade and investment among EU members. Inflation was sought to be prevented by linking weaker national currencies to the comparatively strong and stable German deutsche mark.
"By the early 1980s, the dollar had recovered and reached a new high against all major foreign currencies. In 1985 the United States and its main trading partners started to better adjust their currencies. The European Currency Unit (ECU) was introduced by EMS, and used for accounting and administrative purposes."
Cite this Analytical Essay:
Introduction of the Euro (2003, October 23) Retrieved December 09, 2022, from https://www.academon.com/analytical-essay/introduction-of-the-euro-36935/
"Introduction of the Euro" 23 October 2003. Web. 09 December. 2022. <https://www.academon.com/analytical-essay/introduction-of-the-euro-36935/>