The European Union will enter Stage Three of Economic and Monetary Union (EMU) in 1999. The development of euro … financial markets and thickness externalities in the use of the euro as a means of payment will be the major factors determining … the importance of the euro as an international currency. As euro securities markets become deeper and more liquid and …

On the twentieth anniversary of its inception, the euro has yet to expand its role as an international currency. We …, the euro comprises a far smaller share than that of the US dollar. Furthermore, that share has been roughly constant since … 1999. By some measures, the euro plays no larger a role than the Deutschemark and French franc that it replaced. We explore …

This study grounds the establishment of EMU and the euro in the context of the history of international monetary … for a more expansive monetary policy. Such demands might arise in some parts or regions or countries of the euro area, but …