Еврото – международна валута
The Euro – International Currency

Author(s): Svetlana Aleksandrova-Zlatanska
Subject(s): Economy, Supranational / Global Economy, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Euro; Euro area; Eurozone; Reserve Currency
Summary/Abstract: The global economic crisis has raised questions about the future of the reserve currencies. For more than a century, the dollar has been holding a leading position as an international and reserve currency in the global economy. The financial crisis, economic imbalances and the recession of leading economies have intensified the debate between the dollar, the euro, and the yen as global currencies. The status of the euro as an international currency is facing another challenge – survival in conditions of accumulated budget deficits and growing government debt among some Eurozone countries (Greece, Portugal, Italy, Spain) and the transfer of the debt crisis as a "contagion" from peripheral countries to the centre of the Eurozone. The dynamics and use of the euro by the private sector and by the official monetary institutions, respectively as an international and reserve currency, have been reviewed and analysed. The article is also provoked by the structural deficit that the euro suffers from due to the monetary policy governance aimed at maintaining price stability and the lack of sufficient synchronization in fiscal policy and control of public expenditure.

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