Advertisement

The Impact of the Euro on the International Stability: A Chinese Perspective

  • Mingqi Xu

Abstract

With the successful launch of the euro, most of the observers of the economic world see the euro as a stabilizer in the international economic system. The fact that the Asian financial crisis struck most of the Asian countries causing a great chaos in international economic activities while the euro zone remained insulated and relatively stable convinced more people that the euro is a stabilizer. It can help maintaining international financial stability and pushing forward the reform of the international monetary system. A few scholars also pointed out the possibility of fluctuation once the euro is introduced.1 Since the introduction of the euro on January 1, 1999, the exchange rate relative to the US dollar has been floating in a narrow span and the international financial markets, especially European capital markets, maintained a relative stability. Instead of shifting huge funds into euro assets, international investors seemed very cool about the euro event and most of the asset managers have kept watching rather than shifting their portfolios. Until now erratic fluctuations have not happened in the way some observers predicted. This again seems to Prove the positive impact of the euro.

Keywords

Exchange Rate International Stability Asian Financial Crisis International Coordination Foreign Exchange Reserve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Bergsten, C. Fred. 1997. ‘The Dollar and the Euro.’ Foreign Affairs, vol. 76 (July/August).Google Scholar
  2. Cooper, Richard N. 1992. ‘Will an EC Currency Hann Outsiders?’ Orbis, vol. 36 (Fall).Google Scholar
  3. Debray, Régis. 1998. ‘A Faceless Currency Representing a Virtual Europe.’ International Herald Tribune, November 28–29.Google Scholar
  4. Fratianni, Michele, and Jürgen von Hagen. 1992. The European Monetary System and European Monetary Union. Oxford: Westview Press.Google Scholar
  5. Funke, Norbert, and Mike Kennedy. 1997. ‘International Implications of the European Economic and Monetary Union.’ OECD Working Papers, no. 174, Paris: OECD.CrossRefGoogle Scholar
  6. Gros, Daniel, and Niels Thygesen. 1992. European Monetary Integration. London: Longman.Google Scholar
  7. McCauley, Robert N. 1997. ‘The Euro and the Dollar.’ Essays in International Finance, no. 205 (November). International Finance Section, Princeton University.Google Scholar
  8. Tavlas, George S. 1997. ‘The International Use of the Dollar: An Optimum Currency Area Perspective.’ The World Economy (September).Google Scholar
  9. Welfens, Paul J. J., ed. 1996. European Monetary Integration—EMS Developments and International Post Maastricht Perspectives. Berlin: Springer.Google Scholar

Copyright information

© Springer Science+Business Media New York 2000

Authors and Affiliations

  • Mingqi Xu

There are no affiliations available

Personalised recommendations