The Impact of the Euro Since its Launch Dissertation

The Impact of the Euro Since its Launch - Dissertation Example The currency had also to revive itself from the initial downturn it suffered and later to sustain the growth achieved by it as an international currency. This paper presents the major advantages and disadvantages of the currency as a single currency and the impact it created on the various economic fronts since its inception. The major purpose of introduction of Euro was to take on the challenges of competition posed by the growing attitude of globalization. The other object envisaged by the European Union through the introduction of Euro was to overcome the barriers imposed by the diversities posed by the different economies. These diversities are caused by the conflicting monetary and fiscal policies of the various governments and the multifarious tariffs and restrictions placed on trade and investment. Before the introduction of Euro the euro-zone currencies were greatly influenced by the rise or fall in the rate of US dollar. The introduction and existence of euro has led to the positive impact of alleviating the financial crisis faced by the euro-zone countries since 1998. Further positive effects of the common European currency in the form of price stability, cheaper and better banking facilities, increase in the competitiveness of the industrial enterprises and welfare of the consumers in general have resulted during the last 8 years of the existence. Most generally the vastness of the European internal market with a single currency made Europe a potential competitor to the market of the US.