The Euro and the Stability of the International Monetary System

Columbia University

January 1999

1. An Epoch-Making Event
2. Great International Currencies
3. Features of Great Currencies
·Size of Transactions Domain
·Stability of Monetary Policy
·Absence of Controls
·Strength and Continuity of the Central State
·The Fall-Back Factor
4. Liquidity Effects
·Efficiency Effect
·Money Multiplier: Level
·Money Multiplier: Stability
·Redundant Reserves from Pooling
·Automatic Credit
·International Demand for Euros
·Diversification Problem
5. Expansion of the Euro Area
·EU-4
·CEEC-5
·CEEC-6
6. International Reactions and the Dollar-Euro Rate
7. Stability of the International Monetary System
·Exchange Rate Volatility
·Stability of Currency Areas
·Dynamic Stability
8. Conclusions

References

Paper presented at a conference sponsored jointly by the Luxembourg Institute for European and International Studies and the Pierre Werner Foundation on "The euro as a stabilizer in the international economic system," December 3-4, 1998, at the European Conference Center, Luxemb无忧论文 【http://www.uklunwen.com】ourg ville, the Grand Duchy of Luxembourg.