欧元 .ppt

1、THE EURO,Zeng Liangnan Wang Bo Fan Wei Paul,History of Euro,1. Early Ideas 2. Relaunch 3. Second Stage 4. Launch 5. General Situation,Early Ideas,1971, the creation of the European Monetary System (EMS) Feb. 1986, Single European Act 14 June 1988, European Council Summit,Relaunch,The Delors Report o

2、f 1989 1 July, 1990, the liberalization of capital movements in EEC 7 Feb, 1992, Maastricht Treaty,Second Stage,12 Jan, 1994, European Monetary Institute Dec, 1995, Euro was adopted 17 June, 1997, New Exchange Rate Mechanism (ERM II) 1 June, 1998, Exchange Rate Conversion,Launch,1 Jan, 1999 The curr

3、ency was introduced in non-physical form (travelers, electronic transfers, banking, etc.) at midnight on 1 January 1999. Beginning on 1 January 1999, all bonds and other forms of government debt by Eurozone nations were denominated in euros.,Current Situation,Official Currency in Eurozone (17 countr

4、ies out of 27) Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Further European Countries and District Montenegro, Andorra, Monaco, San Marino and Vatican City,Current Situation,Some sig

5、nificant figures of Euro 332 million daily use 175 million people worldwide 890 billion in circulation The second largest reverse currency and most traded currency,Euro Currency Sign,The symbol comes from Greek epsilon . It used to show the stability of the euro.,Characteristics of Euro Coins,The eu

6、ro is divided into 100 cents, it also called euro cents. The coins are issued in 2, 1, 50c, 20c, 10c, 5c, 2c, 1c denominations. All circulating coins have a common side, and a national side chosen by the issuing bank. Euro coins from any member state may be freely used in any nation which has adopte

7、d the euro,Example,Characteristics of Euro Banknotes,Notes are issued in 500, 200, 100, 50, 20, 10, 5. Each banknote has its own color. The front of the note features windows or gateways while the back has bridges.,Example,Current Situation,Official Currency in Eurozone (17 countries out of 27) Aust

8、ria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Some significant figures of Euro 332 million daily use 175 million people worldwide 890 billion in circulation The second largest reverse curr

9、ency and most traded currency,Benefit of Euro,To remove the cost of exchanging currency To encourage cross-border trade To remove exchange rate risks Financial markets became more liquid and flexible Low levels of inflation encourage macroeconomic stability,Optimal Currency Area,In economics, an opt

10、imum currency area is a geographical region in which it would maximize economic efficiency to have the entire region share a single currency. Concern about diverging economies before creation of the single currency After Greek sovereign debt crisis, Eurozone is in danger of collapse. -Two biggest ec

11、onomies in the euro zone, Germany and France, had broken the rules for three years in a row.,The euro has been the second most widely held international reserve currency after the U.S dollar. But this condition had been changed since the beginning of sovereign debt crisis. The original cause can be

12、the financial tsunami in 2008. Many European countries had experienced a great shock in the international banking system. A confidence crisis has spread in these countries,Background,why its difficult to have a single currency,The lack of labor mobility,lower productivity growth,forcing down relativ

13、e wages,evening out trade flows,shift where the work is done at the margin,Current measures,EU finance ministers held preparatory sessions and agreed to release an 8 billion euro lifeline loan for Greece and to seek a far bigger writedown of Greek debt by private bondholders.,Conclusion,Euro may be

14、a useful instrument over the long term, but its success is only the past performance. Europe needs to do something toward fiscal unification if the euro zone is to survive.,Advantages and Disadvantages of Euro,The euro is fundamentally a tool to enhance political solidarity. This political motivatio

15、n began when the idea of the European Union and a single currency was first conceived. While it also has the economic effect of unifying the economies of participating countries, it ultimately does much more for the European Union.,Elimination of exchange-rate fluctuations Price transparency Transac

16、tion costs Increased trade across borders Increased cross-border employment Simplified billing Expanding markets for business Financial market stability Macroeconomic stability Lower interest rate Structural reform for European economies,Advantages,While there are many advantages to the euro, there

17、are also some disadvantages. The cost of transitioning 12 countries currencies over to a single currency could in itself be considered a disadvantage. Billions were spent not only producing the new currency, but in changing over accounting systems, software, printed materials, signs, vending machine

18、s, parking meters, phone booths, and every other type of machine that accepts currency. In addition, there were hours of training necessary for employees, managers, and even consumers. Every government from national to local had impact costs of the transition. This enormous task required many hours

19、of organization, planning, and implementation, which fell on the shoulders of government agencies.,Disadvantage,The chance of economic shock is another risk that comes along with the introduction of a single currency. On a macroeconomic level, fluctuations have in the past been controllable by each country. With their own national currencies, countries could adjust interest rates to encourage investments and large consu