The Dollar, the Euro and the Role of Emerging Currencies

International Journal of Indian Culture and Business Management, Vol. 2, pp. 11-29, 2009

17 Pages Posted: 14 Oct 2007 Last revised: 12 Feb 2009

See all articles by A. (Tassos) G. Malliaris

A. (Tassos) G. Malliaris

Loyola University of Chicago - Department of Economics

Bala Batavia

DePaul University

Abstract

Since the collapse of the Bretton Woods Global International System in 1971, the world economy has experienced significant currency volatility. The major economies of the world have addressed such volatility differently. The EU has chosen to follow a monetary union and introduced successfully a new currency. The U.S. has paid less attention to the fluctuations of the dollar and has pursued an independent monetary policy to promote national economic stability. Japan has seen its currency appreciate significantly. This paper argues that while trade and growth across the globe are doing well, financial developments are intensifying the competition between the U.S. dollar and the euro. Four possible future scenarios are developed and discussed.

Keywords: International Monetary System, Global Currencies, Euro

JEL Classification: F01, F31, F33

Suggested Citation

Malliaris, A. (Tassos) G. and Batavia, Bala, The Dollar, the Euro and the Role of Emerging Currencies. International Journal of Indian Culture and Business Management, Vol. 2, pp. 11-29, 2009. Available at SSRN: https://ssrn.com/abstract=1020991

A. (Tassos) G. Malliaris (Contact Author)

Loyola University of Chicago - Department of Economics ( email )

16 E. Pearson Ave
Quinlan School of Business
Chicago, IL 60611
United States
312-915-6063 (Phone)

Bala Batavia

DePaul University ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

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