The Euro
The road leading to a European single currency began more than fifty years ago with the formation of the OEEC (Organization for European Economic Cooperation) in 1948 and the road still continues today. The implementation of this new European currency is about to take affect and even though this issue seems to be a very mild debate amongst other things happening in the world today, it could have a very negative affect on the way we, as Americans, and the rest of the world do business. Not only will these dramatic changes alter our business it will also have a major affect on our economy: i.e. currency, interest rates, global trade, U.S. jobs, and investments. This viewpoint, however, is only of countries or regions outside of Europe. When looking from the inside you will find that this conversion is going to be a very positive thing for the European economy but despite this it could also eventually lead to political and maybe even military clashes with the United States. The unity of Europe has already begun and The European Union is about to be given a single currency. With the release of the Euro all other currencies that the European countries are currently operating under will be obsolete. The Eur
Some of the main reasons that other countries and even some of the European countries who are considering to join the union but still remain reluctant are: the cost of introduction, non-synchronicity of business cycles, and fiscal policy spillovers. In order for all the countries to make the deadline of the complete conversion, it will cost them by converting their old bills and coins to new ones. This will involve some costs as banks and businesses need to update computer software for accounting purposes, updating price lists, and so on. Another reason why countries are against the common currency is that since the business cycles across countries do not move in synchronicity, Europe may not constitute an "optimum currency area". Fiscal policy spillovers say that interest rates vary between the different countries and if the countries merge there will only be one Europe-wide rate. Therefore EU countries may have to increase their intra-EU transfer payments to help regions in need. From my personal standpoint, I am almost caught in the middle of this issue. Even though I strongly believe that this could be very harmful to U.S. economy, I also strongly believe in the illegality of monopolization. The United States has come to the conclusion that one single business ru
Some common words found in the essay are:
Government Cons, European Union, Economic Cooperation, European Constitution, Euro United, United Europe, , United Pros, European Commission, United Kingdom, european union, fiscal policy spillovers, business cycles, european countries, european economy, single currency, strongly believe, fiscal policy, policy spillovers, common currency, it's own,
Approximate Word count = 866
Approximate Pages = 3 (250 words per page double spaced)
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