Hostname: page-component-78c5997874-s2hrs Total loading time: 0 Render date: 2024-11-04T19:44:11.365Z Has data issue: false hasContentIssue false
  • English
  • Français

Analysis of the Economic Impacts of the Euro, the Efficiency of the Euro in the Optimum Currency Area, and the Place of the Euro in Global Economics

Published online by Cambridge University Press:  07 January 2020

Hüseyin Özdeşer
Hüseyin Özdeşer*
Affiliation:
Near East University, North Cyprus, Nicosia, Cyprus. Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

The introduction of the euro has led to three dominant currencies in the financial markets, namely the euro, dollar and yen. The use of the euro as the single currency is a key element for economic and political unification in the EU (European Union). While some of the criteria for achieving monetary integration between the European Monetary Union (EMU) member countries in the euro area have been satisfied, some problems still remain. As the euro is not the currency of a single country like the dollar, the dollar still retains its dominant position in the international markets. After the Brexit referendum, apprehension regarding the collapse of the EU has reached a peak. Originally introduced in 12 EU member countries, and since extended to 19, the euro may potentially embrace 27 member countries. In this study, the economic impacts of the euro on the per capita income, inflation rate and foreign direct investment are analysed. The analysis will be performed on three countries participating in the EMU, namely, Germany, France and Italy.

Type
Articles
Information
European Review , Volume 28 , Issue 2 , April 2020 , pp. 258 - 275
Copyright
© Academia Europaea 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baimbridge, MBurkitt, B and Whyman, P (2000) The Impact of the Euro, 1st Edn. Houndmills: Macmillan.CrossRefGoogle Scholar
Baldwin, R and Wyplosz, C (2009) The Economics of European Integration, 3rd Edn. Maidenhead, UK: McGraw-Hill Education.Google Scholar
BREXIT (2015) The impact on the UK and the EU, Global Counsel (GC). Available at https://www.global-counsel.co.uk/sites/default/files/special-reports/downloads/Global%20Counsel_Impact_of_Brexit.pdfGoogle Scholar
Dyker, AD (1999) The European Economy, 2nd Edn. London, UK: Addison Wesley Longman.Google Scholar
European Central Bank (ECB) (2015) Eurosystem. The international role of the euro. Available at Ecb.europa.eu/pub/pdf/other/euro-international-role-201507.en.pdf (accessed 20 August 2016).Google Scholar
European Commission (EC) (2016) What is the euro area? The Euro Area consists of those Member States of the European Union that have adopted the euro as their currency. Commission and its priorities. Policies, information and Services. Available at http://ec.europa.eu/economy_finance/euro/adoption/euro_area/index_en.htm).Google Scholar
European Union (EU) (2016) EU member countries in brief. Available at https://europa.eu/european-union/about-eu/countries/member-countries_enGoogle Scholar
McCormick, J (2005) Understanding the European Union, 3rd Edn. New York: Palgrave Macmillan.Google Scholar
Mongelli, F (2008) European economic and monetary integration and the optimum currency area theory. Economic papers 302, economic and financial affairs. Available at https://ec.europa.eu/economy_finance/publications/pages/publication12081_en.pdf (accessed 26 September 2016).Google Scholar
Mundell, R (1977) Colombia University. Extended version of a luncheon speech presented at a conference on Optimum Currency Areas at Tel-Aviv University, 1977. Available at (http://www.columbia.edu/~ram15/eOCATAviv4.html) (accessed 19 August 2016).Google Scholar
Özdeşer, H (2015) Avrupa merkez bankası’nın (amb) euro yönetimindeki etkinlik sorununun analizi. Yönetim ve Ekonomi 22, 467–482. https://doi.org/10.18657/yecbu.29330Google Scholar
Pelkmans, J (2001) European Integration, Methods and Economic Analysis, 2nd Edn. Englewood Cliffs, NJ: Prentice Hall.Google Scholar
Rostowski, J (2003) When should central Europeans join EMU? International Affairs 79, 993–1008.CrossRefGoogle Scholar
Ryan, R and Loughlin, J (2018) Lessons from historical monetary unions – is the European Monetary Union making the same mistakes? International Economic Monetary Policy, 709–725. https://doi.org/10.1007/s10368-018-0416-8CrossRefGoogle Scholar
The Economic Impact of ‘Brexit’ (2016) A paper discussing the United Kingdom’s relationship with Europe and the impact of ‘Brexit’ on the British economy. Available at https://woodfordfunds.com/economic-impact-brexit-report/Google Scholar
Zestos, KG (2006) European Monetary Integration, the Euro. Mason, OH: Thomson South-Western.Google Scholar