The dollar has been the dominant currency of the world economy for almost a century; since 2002, the euro has gained widespread international acceptance resulting in important institutional, economic and financial changes both for the euro zone, the United States and the world economies, affecting foreign exchange and financial markets as well as economic activities around the world. In years to come, the international role of the euro will hinge on the validity of the fundamental idea underlying its creation, namely that important components of sovereignty can be pooled and shared among nations in the pursuit of common economic and political objectives. This key book assesses the international role of the euro, discusses its impact on global financial markets, shifting global exchange rate relationships and their implications. With input from various disciplines (economics, business and political science), it foments discussions intended to facilitate an exchange of ideas among academics, practitioners and the local business community.
'In this very nice volume reputed academics, senior central bankers and other policymakers discuss the euro-dollar exchange rate, the international role of the euro, the implications of eurozone enlargement, and the relevance of the euro for the global economy. Therefore, it will be obligatory reading for policymakers and scholars interested in the eurozone and the world economy.' Sylvester C.W. Eijffinger, Tilburg University and RSM Erasmus University, The Netherlands, Centre for Economic Policy Research, London, UK and CESifo Research Network, Munich, Germany 'A very useful book that contemplates the most important dimensions of the monetary unification of Europe, itself one of the most complex operations of political and economic engineering of the history. The current role of the euro and its relationship with the dollar is very well treated and documented.' Emilio Ontiveros, Universidad AutÃ³noma de Madrid, Spain 'This work is timely…Readers will appreciate the varied approaches taken by the contributors, who hail from fields including economics, business, international relations, and political science. Highly recommended.' Choice '…this volume, which brings together specialists from different backgrounds, tackles an extremely interesting topic and invites us to reflect on problems which will have consequences not just on countries in the Euro zone and their neighbours, but also on developing countries, transition countries and all the others, with the United States and Canada at the head of them all.' Etudes internationales
Contents: Preface; Part I The Euro, This Unknown!: Introduction to the dollar and the euro, Pedro Gomis-Porqueras; 7 years with the euro, JoaquÃn Almunia; A financial and politically symbolic tool, JoaquÃn Roy. Part II The Euro-Dollar Exchange Rate: A Puzzling Relationship: Euro-dollar puzzles, Kurt HÃ¼bner; Euro-dollar: an holistic view of the economy, Hans Martens. Part III The International Role of the Euro: Living up to expectations? Taking stock in the international role of the euro, J. Onno de Beaufort Wijnholds and Julie McKay; Is the euro ready to play the global currency role?, Miriam L. Campanella; Enlargement and the international role of the euro, Benjamin J. Cohen. Part IV The Euro and the European Economic Governance: Running an enlarged eurozone. Reforming the ECB governing council: efficiency, representation and national economic interest, David Howarth; The political economy of eurozone enlargement: the motives, prospects and implications for the EU and its member states, Ramunas Vilpisauskas; The euro and economic reforms: the case of Spain, SebastiÃ¡n Royo. Part V The Euro in the Global Economy:Global imbalances and the need for policy adjustment, José Manuel GonzÃ¡lez-PÃ¡ramo; The euro and developing countries, Francesc Granell; Currency crises and institutional changes in Latin America: lessons from Mexico, Angel CalderÃ³n-Madrid. Conclusions: Is there a future for the euro in the global economy?, Pedro Gomis-Porqueras and JoaquÃn Roy; Index.