Euro-Definition, History, & Facts Research Paper

Euro-Definition, History, & Facts - Research theme Example break off II presents the effects of the euro in international business and trade as the guerilla largest currency in the world economy. It also looks into the use of the euro outside the euro area and the Iranian Oil Bourse.Part III presents differing views on the effects of the euro on the economies of the subdivision states in the euro area. It also presents the effects of the euro on the diametrical stock markets of the member states. Empirical selective information on the effects of the euro are discussed in Part IV, presenting data from 2002 to June of 2006.Parts VI and VII look into the stand of the United Kingdom (UK) on the adoption of the euro. It discusses the criteria regulate by the UK which the euro has to pass before its adoption. Also discussed are the possible effects should the UK adopt the euro, presenting the different sides of the issue.The atomic number 63an single currency may trace its origins bac k to the vision of an even more united Europe enjoying economic prosperity, where the people, services, capital, and goods move freely across member countries. This was first translated into words in the Treaty of capital of Italy in 1957. The Marjolin Memorandum, a European Commission document, issued in 1962, was the first Memorandum to open possibilities toward Community take aim economic and monetary union. The idea of a distinct monetary identity once once more surfaced in the Barre Plan submitted by the European Commission in 1969. Taking this vision a footfall further, the Single European exertion (1986) and the Treaty on European wedding (1992) introduced the Economic and Monetary Union (EMU), the third phase of which begun with the setting of the exchange rates of the different currencies (European of import Bank, 2004).Also, the proponents of the Single European Act introduced the Single Market which is seen to promote greater economic integration among member states . However, it is seen that this can only be fully achieved with a single currency. A single currency is expected to ensure price transparency, take away exchange rate risks, reduce transaction costs and ultimately increase the economic development of the euro area. (European Central Bank, 2006) Also, having been beset with poor economic growth since the 1970s, the launch of the euro as the single currency of the EMU member states was expected to address the causes of the problems of high inflation, high interest rates, and unsustainable public finances which are characteristics of exceedingly correct and fragmented markets. The EMU was expected to pave the way for greater macroeconomic stability and improved economic efficiency in the euro area. (European Commission DG-EFA, 2004).On 01 January 1999, the common currency is adopted by Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, and Finland, with Greece subsequently association on 01 January 2001Two years hence, on 01 January 2002, euro notes and coins were introduced.