The Euro Also Rises

• It may seem now as if prophesies for a displacement of the dollar from its position ofpre-eminence in the global economy were premature. However, the last word is not saidyet on the rise of the euro In this paper, a fresh look is taken at the prospects for theeuro emerging as the main vehicle and reserve currency in the world, looking inparticular at the role of European financial markets and developments in the emergingmarkets of Asia. Output growth in the euro area and in the United States will have adecisive impact as well. The paper highlights the role of some key factors, not reallytaken up in related discussions thus far, which can influence the long-run globalinfluence of the euro area economy relative to the U.S. Alternate energy source usescenarios and continued trade and financial integration in the euro area as well as inAsia are pointed out as having crucial impacts on the global role of the euro in thefuture.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Keyword

Business and economics

Ekonomi

Publication and Content Type

vet (subject category)

rap (subject category)