Dollar-Euro Exchange Rate 1999-2004 - Dollar and Euro as International Currencies

24 Pages Posted: 16 Jun 2005

See all articles by Rasul Shams

Rasul Shams

Hamburg Institute of International Economics

Date Written: May 2005

Abstract

On January 1, 1999 euro became the currency for 11 member states of the European Union. Since then the dollar-euro exchange rate has completed a full turning. Three years of depreciation of the euro followed by three years of appreciation without wild fluctuations asks for an explanation which would adequately account for the position of the euro as an emerging international currency. In this paper, first we present a concise summary of the theory of world money. Then we apply the theory to explain the development of the exchange rat of euro versus dollar in the subperiods 1999-2002 and 2002-2004.

Keywords: Exchange Rates, Balance of Payments, International currency

JEL Classification: F3, F41, G15

Suggested Citation

Shams, Rasul, Dollar-Euro Exchange Rate 1999-2004 - Dollar and Euro as International Currencies (May 2005). HWWA Discussion Paper No. 321. Available at SSRN: https://ssrn.com/abstract=743064 or http://dx.doi.org/10.2139/ssrn.743064

Rasul Shams (Contact Author)

Hamburg Institute of International Economics ( email )

Heimhuder Strasse 71
D-20347 Hamburg, DE Hamburg 20148
Germany
+49 40 42834 442 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
998
Abstract Views
12,324
rank
21,361
PlumX Metrics