FREE ESSAY ON EURO IN AMERICA

EURO IN AMERICA

On January 1,1999, the world witnessed a change never seen before: eleven nations of the
European Union fixed their currencies to each other and established the world's first
common currency, the Euro. The creation of a single European currency will be the most
important development in the international monetary system since the adoption of flexible
exchange rates in the early 1970. The dollar will have its first competitor since it
replaced the pound sterling as the world dominant currency during the post-war period
after World War I, and it consolidated after World War II. The political impact of the
Euro will be at least as great. A bipolar currency regime dominated by Europe and the
United States, with Japan as a junior partner may replace the dollar-centered system that
has prevailed for most of this century.