自从欧元进入国际市场以来,已经十年了。随着全球化浪潮的推出,欧元在跨境资本、贸易和外包、证券和外汇市场的交易额以及跨境资产持有量等方面的增长,看到了许多收益。十年来,由于日益增长的经常账户失衡,外汇储备的大量增加。随着欧元的国际C的作用,出现了急剧变化,在国际市场上的投资组合被转移从美元计价的以欧元计价的美元,导致美元贬值。此外,中国银行的意见,以支持更强劲的货币增加了美元的贬值。
Chapter 1:
Introduction:简介
When the European Union was founded in 1957 their initial endeavor was to establish a "common market". However they found this idea not taking shape as their financial objectives didn't seem to prosper due to lack of a common c. In 1992, the Maastricht Treaty paved the way for a single c for the EU.
It's been a decade since euro had been floated into the international markets. With its introduction in the rush for globalization saw many gains for euro in terms of increase in cross-border capital, trade, and outsourcing, securities and foreign exchange markets turnover as well as in cross-border asset holdings. The decade even saw a huge mounting up of foreign reserves due to growing current account imbalances. With euro taking the role of an international c, there had been drastic changes in the international markets with portfolios being shifted from dollar-denominated to euro-denominated which had led to depreciation in dollar. Moreover Bank of China's opinion to support stronger currencies had added to the dollar depreciation.
Research aim:
The main aim of the research is to understand the sustainability of euro based on financial, economic and political factors. With the euro combining various markets into a single European market, consumer welfare has improved. This had led to convergence of money and capital markets through increased competition, market liquidity and transparency in operation with economies of scale and scope. Euro has gained the potential of risk diversification and more efficient allocation of capital resources. Elimination of exchange rate risk has increased price transparency, thereby reducing transaction costs and boosting competition in international markets.
Research objective:
The primary intention is to analyze if the future of euro is moving towards success or failure given the social, economic and political factors. While the euro c as well as its policy framework has attributed to stability and prosperity in euro area, the global crisis identified the necessity to strengthen European economic governance as a remedy against future challenges. Euro has gained importance in global markets by allowing global public and private investors to diversify their asset allocation and borrowers to find other sources of funding. Proper and timely actions by the European Financial stability Facility had helped a great extent in safeguarding euro so far. With the European Stability Mechanism being activated till June 2013, financial stability of the euro area is expected to be in full transparency so as to revive in times of financial distress.
Research questions:
Will the size of the economy help in sustaining the euro stability?
Will focus on international trade help in stabilizing?
Based on the size, depth, liquidity and openness of the domestic financial markets, can the euro be stabilized?
Is the euro stable enough to ensure easy convertibility of its c?
Can macroeconomics play a vital role in preserving euro stability?
Significance of the study:
The study aims to implicate the following:
Need for further economic amalgamation so as to tackle problems in times of crisis.
Need for a banking union thereby giving control to European Central Bank (ECB) to oversee all euro-zone banks in one step process.
Government efforts are needed in order to devise economic and fiscal outline which are essential to the euro c.
Efforts are also needed from financial market participants and supervisors, given that the maintenance of the financial market stability plays a crucial role for monetary and macroeconomic stability.
Research objectives:
The main objective of this report is to assess the success or failure of implementing a unified c, being the Euro c. Examining this topic yields a look into the viability of having