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The International Role of the Euro

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Author Info
Agnes Benassy-Quere
Benoit Mojon
Armand-Denis Schor

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Abstract

The creation if the euro will be a major change to the International Monetary System, for at least three reasons. Firstly, the euro will be the currency of a large economic zone and will acquire some of the fundamental attributes which characterise an international currency. Secondly, the monetary policy of EMU members will involve a major institutional shift which could affect the behaviour of trans-Atlantic exchange rate. Finally, the emergence of the euro as an international currency, together with institutional changes and with the strong commitment of the European Central Bank (ECB) to maintain stable prices, should lead to a shift in the practice of international cooperation.

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Paper provided by CEPII research center in its series Working Papers with number 1998-03.

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Date of creation: Jul 1998
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Handle: RePEc:cii:cepidt:1998-03

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Related research
Keywords: EXCHANGE RATE; EUROPE; MONETARY AREAS;

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Find related papers by JEL classification:
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F31 - International Economics - - International Finance - - - Foreign Exchange
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Cohen, Daniel & Wyplosz, Charles, 1989. "The European Monetary Union: An Agnostic Evaluation," CEPR Discussion Papers 306, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Persson, Torsten & Tabellini, Guido, 1996. "Monetary Cohabitation in Europe," American Economic Review, American Economic Association, vol. 86(2), pages 111-16, May. [Downloadable!] (restricted)
    Other versions:
  3. Paul R. Masson & Steven A. Symansky, 1993. "Evaluating the EMS and EMU Using Stochastic Simulations: Some Issues," IMF Working Papers 93/28, International Monetary Fund.
  4. Robert N. McCauley & William R. White, 1997. "The Euro and European financial markets," BIS Working Papers 41, Bank for International Settlements. [Downloadable!]
  5. Barry Eichengreen and Jeffrey A. Frankel., 1996. "On the SDR: Reserve Currencies and the Future of the International Monetary System," Center for International and Development Economics Research (CIDER) Working Papers C96-068, University of California at Berkeley.
  6. Directorate General II,Economic and Financial Affairs, 1997. "External Aspects of Economic and Monetary Union," Papers 1, Commission of the EEC - Euro Papers.
  7. Alogoskoufis, G. & Portes, R. & Rey, H., 1997. "The Emergence of the Euro as an International Currency," DELTA Working Papers 97-28, DELTA (Ecole normale supérieure).
    Other versions:
  8. Paul R. Masson & Bart Turtelboom, 1997. "Characteristics of the Euro, the Demand for Reserves, and Policy Coordination Under EMU," IMF Working Papers 97/58, International Monetary Fund.
  9. Cohen, Daniel, 1997. "How Will the Euro behave?," CEPR Discussion Papers 1673, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Hughes Hallett, Andrew & Minford, Patrick & Rastogi, Anupam, 1992. "The Price of EMU Revisited," CEPR Discussion Papers 656, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  11. Grassman, Sven, 1973. "A fundamental symmetry in international payment patterns," Journal of International Economics, Elsevier, vol. 3(2), pages 105-116, May. [Downloadable!] (restricted)
  12. Norbert Funke & Mike Kennedy, 1997. "International Implications of European Economic and Monetary Union," OECD Economics Department Working Papers 174, OECD, Economics Department. [Downloadable!]
  13. Agnes Benassy-Quere & Benoit Mojon, 1998. "EMU and Transatlantic Exchange Rate Stability," Working Papers 1998-02, CEPII research center. [Downloadable!]
  14. Martin, Philippe, 1997. "The Exchange Rate Policy of the Euro: A Matter of Size?," CEPR Discussion Papers 1646, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  15. Paul R. Masson & Guy Meredith & Steven A. Symansky, 1990. "MULTIMOD Mark II: A Revised and Extended Model," IMF Occasional Papers 71, International Monetary Fund.
  16. Flood, Robert P. & Rose, Andrew K., 1995. "Fixing exchange rates A virtual quest for fundamentals," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 3-37, August. [Downloadable!] (restricted)
    Other versions:
  17. Agnes Benassy-Quere, 1996. "Potentialities and opportunities of the Euro as an international currency," Working Papers 1996-09, CEPII research center. [Downloadable!]
    Other versions:
  18. Agnes Benassy-Quere, 1997. "Optimal Pegs for Asian Currencies," Working Papers 1997-14, CEPII research center. [Downloadable!]
    Other versions:
  19. Ralph C. Bryant & John Helliwell & Peter Hooper, 1989. "Domestic and cross-border consequences of U.S. macroeconomic policies," International Finance Discussion Papers 344, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  20. Romer, David, 1993. "Openness and Inflation: Theory and Evidence," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 869-903, November. [Downloadable!] (restricted)
    Other versions:
  21. Mitchell, Peter R. & Sault, Joanne E. & Smith, Peter N. & Wallis, Kenneth F., 1998. "Comparing global economic models," Economic Modelling, Elsevier, vol. 15(1), pages 1-48, January. [Downloadable!] (restricted)
  22. Directorate General II, Economic and Financial Affaires., 1997. "The Impact of the Introduction of the Euro on Capital Markets," Papers 3, Commission of the EEC - Euro Papers.
  23. Agnes Benassy-Quere & Benoit Mojon & Jean Pisani-Ferry, 1997. "The Euro and Exchange Rate Stability," Working Papers 1997-12, CEPII research center. [Downloadable!]
  24. Agnes Benassy-Quere, 1996. "Exchange rate regimes and policies in Asia," Working Papers 1996-07, CEPII research center. [Downloadable!]
  25. Friberg, Richard, 1996. "On the Role of Pricing Exports in a Third Currency," Working Paper Series in Economics and Finance 128, Stockholm School of Economics. [Downloadable!]
  26. Alessandro Prati & Garry J. Schinasi, 1997. "European Monetary Union and International Capital Markets: Structural Implications and Risks," IMF Working Papers 97/62, International Monetary Fund.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Helmut Frisch, 2003. "The euro and its consequences: What makes a currency strong?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 31(1), pages 15-31, March. [Downloadable!] (restricted)
  2. Bas van Aarle & Harry Garretsen & Florence Huart, 2003. "Transatlantic Monetary and Fiscal Policy Interaction," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. BEN ALI Mohamed Sami, 2006. "Capital Account Liberalization And Exchange Rate Regime Choice, What Scope For Flexibility In Tunisia?," William Davidson Institute Working Papers Series wp815, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  4. Schettino, Francesco, 2004. "The FTAA After The Emergence Of the Euro," MPRA Paper 3988, University Library of Munich, Germany, revised Jan 2006. [Downloadable!]
  5. Jürgen Von Hagen, 1999. "Macroeconomic Consequences of the EMU," Empirica, Springer, vol. 26(4), pages 359-374, December. [Downloadable!] (restricted)
  6. C. Randall Henning, 2006. "The External Policy of the Euro Area: Organizing for Foreign Exchange Intervention," Peterson Institute Working Paper Series WP06-04, Peterson Institute for International Economics. [Downloadable!]
  7. Patricia S. Pollard, 2001. "The creation of the Euro and the role of the dollar in international markets," Review, Federal Reserve Bank of St. Louis, issue May, pages 17-36. [Downloadable!]
Statistics
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