The euro is the second most important global currency after the US dollar. However, its international role has not … increased since its inception in 1999. The private sector prefers using the US dollar rather than the euro because the financial … market for US dollar-denominated assets is larger and deeper; network externalities and inertia also play a role. Increasing …

Tiny changes in the American monetary policy can have dramatic effects on the rest of the world because of dollar …

the U.S. dollar. To avoid further turmoil, the IMF now argues that these currencies should float more freely. However, our … econometric estimations show that the dollar's predominant weight in East Asian currency baskets has returned to its pre …-crisis levels. By 2002, the day-to-day volatility of each country's exchange rate against the dollar has again become negligible. In …

force in world capital markets, although the importance of EU monetary policy decisions has been increasing and a Euro bloc …