Analysing the Economic Impacts of the Euro for the Three Largest Economies in the Emu (European Monetary Union) and the Place of the Euro in Global Economics

Abstract

Before the monetary integration process in the EU, there were also other attempts establish monetary integrations such as the Latin, Scandinavian and Germany monetary unions. For the European Union, achieving monetary unification can be accepted as the main factor for a stable unification between the member countries. Application of the common economic policies under the umbrella of monetary union also has significant importance for the EU in order to establish political unification. It is undeniable that the introduction of the euro has had significant importance for global politics and economics. The inability of the EU to act as one body, as in the United States, is an important factor that has led to the euro being a more uncertain currency compared to the dollar. The likelihood of Brexit and similar events raises the risk of the collapse of the EU, which leads to uncertainty about the future of the euro, and undoubtedly makes it a more risky investment instrument against the dollar. In this study, the economic impacts of the euro on the three largest economies in the EMU (European Monetary Union) member countries is analysed the efficiency of the euro created in the optimum currency area and the place of the euro in the global economy compared with the dollar will be investigated.