The Euro and Its Impact

Only available on StudyMode
  • Download(s) : 287
  • Published : June 20, 2011
Open Document
Text Preview
The euro is the official currency of the Eurozone, which 17 of the 27 European unions have joined. The Eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Compared to the US dollar the euro is higher in value, the reason for the dollar being so weak is debt. The US was so far in debt that the congress would no longer let the government borrow money. So the government decided to print more money leading to an inflation, which brought down the dollar’s value. It got so bad that the other countries that were doing business with the US stopped and switched to the euro as their basis of exchange. This even made the euro stronger.

Although the euro is stronger at the moment, it has made some countries worse off by adopting it. If their economy was better than some of the other countries, but the currency remains the same because of all the weaker countries bringing them down.

The countries that benefit from adopting the euro are the opposite. Instead of being worse off from adopting the euro, they benefit. By adopting the euro some of the other countries can help make their economy better.

Right now 1 euro is equal to $1.42 of US currency, and 5 euros is equal to $7.08. In order to increase the US dollars value and strength we need to get out of debt. Which will make for a better economy in the Unites States.
tracking img