Friday, October 19, 2018

''The international use of the euro: What can we learn from past examples of currency internationalisation?'' Emmanuel Mourlon-Druol

''The euro must become the face and the instrument of a new, more sovereign Europe” said Jean-Claude Juncker in his ‘State of the Union’ speech before the European Parliament on September 12th 2018. His words have promoted discussion of the potential wider use of the euro on the international stage.
This post reviews, in chronological order, four previous cases when the international role of a currency was debated in the past: the decline of sterling and its progressive and proactive withdrawal from international-currency status; the ‘exorbitant privilege’ of the dollar; the push for giving a voice to Europe on the international monetary stage after the breakdown of Bretton Woods; and the refusal of German authorities to see a greater international use of the D-mark in the 1970s and 1980s..''

No comments:

Post a Comment