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The Euro and the Dollar, 1998

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  • Robert McCauley

Abstract

There is no immediate prospect for the euro to become an anchor currency outside Central Europe and the Mediterranean. Still, a successful euro could deepen European financial markets and attract more international investment to the euro area. The prospect of substantial portfolio shifts into the euro, however, does not justify forecasts that the new currency will appreciate against the dollar over an extended time horizon. Liability managers outside the euro area should also find the enhanced liquidity and improved diversification possibilities of euro-denominated debt attractive. Copyright Kluwer Academic Publishers 1999

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Bibliographic Info

Article provided by Springer in its journal Open Economies Review.

Volume (Year): 10 (1999)
Issue (Month): 1 (February)
Pages: 91-133

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Handle: RePEc:kap:openec:v:10:y:1999:i:1:p:91-133

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Web page: http://www.springerlink.com/link.asp?id=100323

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Keywords: anchor currencies; official reserves; financial markets; portfolio shifts;

References

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Cited by:
  1. Robert N McCauley, 2001. "Setting Monetary Policy in East Asia: Goals, Developments and Institutions," RBA Annual Conference Volume, in: David Gruen & John Simon (ed.), Future Directions for Monetary Policies in East Asia Reserve Bank of Australia.

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