The Union That Never Was

The European Single Currency or “euro” has been in circulation in seventeen European countries for ten years and a few days now. Introduced on 01 January 2002 with national currency coins and notes phased out until 28 February 2002, the “euro” replaced all previously used currencies throughout EMU countries (European Monetary Union). To be found in people’s wallets doesn’t mean that something is a real currency though. Surprising as it was in 2002, that thing appearing to be a currency at first sight lacked a vital ingredient of a working currency: a correspondingly unified bond market. During the run-up to...

The Euro — a Goner

The departure of Jürgen Stark from the German Bundesbank’s board sent the European Single Currency or euro sharply lower. The euro closed down more than three cents against the U. S. dollar and ended the week at $1.3655. This weakness was confirmed accross the board with the euro also down against the British pound, Canadian dollar, Japanese yen, minor Scandinavian and other currencies. Mr Stark had been seen as the last economics hawk on the board of the Bundesbank and his departure indicates that the euro has lost another defender of financial responsibility. News of the German public being fed...