The euro as an international currency

Agnès Benassy-Quere

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: The euro, in spite of having many of the required attributes put forward by the theoretical literature and past experience, has failed to fulfill all the criteria that would enable it to rival the dollar as an international currency. This does not mean that the euro cannot achieve a status similar to that of the dollar; however, the window of opportunity may not last much more than a decade before the renminbi overtakes the euro. European monetary unification has never explicitly sought for its currency to gain an international status. This makes sense insofar as the key elements required for the euro to expand internationally are also those to be pursued internally: GDP growth; a fiscal backing to the single currency; a deep, liquid and resilient capital market; and a unified external representation of the euro area

Keywords: Currency internationalization; euro (search for similar items in EconPapers)
JEL-codes: F36 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2015-03
New Economics Papers: this item is included in nep-eec, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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ftp://mse.univ-paris1.fr/pub/mse/CES2015/15029.pdf (application/pdf)

Related works:
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
Working Paper: The euro as an international currency (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:15029

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