The IMS and the Euro

Kirrane, Chris (2003): The IMS and the Euro. Published in: European Political Economy Review No. 1 (1 March 2003): pp. 153-165.

Abstract

The euro, which replaced eleven national currencies on 1 January 1999, became the single currency of the European Union. It is therefore an international currency, which is not without important consequences for the international monetary system. Can the euro fulfill the functions of such a currency: the answer is affirmative. Will it actually fulfill these functions and become a competitor of the dollar? The answer is more uncertain: yes, but without knowing to what extent or at what rate. One of the reasons for this uncertainty is the offer of the euro as an international currency, that is to say the terms of its creation, which will be linked to the international transactions of the Union. Finally, the international monetary system is still that of Bretton Woods, in which the IMF plays an important role: how will the Euro be represented, how will the Fund integrate the euro into its operations, such as the SDR, and how will it monitor exchange rate policies?

• Item Type: MPRA Paper
• Language: English
• Keywords: Euro
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

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