IDEAS home Printed from https://ideas.repec.org/a/taf/rseexx/v36y2012i1p107-125.html
   My bibliography  Save this article

The Future Of The Euro As a Global Key Currency: First Place Or Second Fiddle?

Author

Listed:
  • G M Wessels

Abstract

In a globalised world efficient international trade and investment require a respected and stable international key currency. The current key currency, the US dollar (hereafter dollar), faces serious predicaments because of its home country’s economic woes. This strengthens the likelihood of the euro assuming future primacy in the constellation of global key currencies. This paper assesses such likelihood by researching the requirements and determinants for the attainment of international key currency status and applying them to the euro. It is argued that any expectation about the euro becoming the dominant key currency in the foreseeable future is unrealistic. This is because the euro lacks a competitive financial and structural basis in comparison to the dollar, but even more so because the euro is deficient in its geostrategic and political support base in the global economy.

Suggested Citation

  • G M Wessels, 2012. "The Future Of The Euro As a Global Key Currency: First Place Or Second Fiddle?," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 36(1), pages 107-125, April.
    • Handle: RePEc:taf:rseexx:v:36:y:2012:i:1:p:107-125
    DOI: 10.1080/10800379.2012.12097234
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10800379.2012.12097234
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10800379.2012.12097234?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rseexx:v:36:y:2012:i:1:p:107-125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsee .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.