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The Euro A Research Paper About The Euro I Had To Write This For My Economics Class

1911 words - 8 pages

The Euro-The Euro is a currency that will simplify the way Europeans spend money. In 1999 eleven European countries: Germany, France, Italy, Spain, Luxembourg, Belgium, Austria, Portugal, Finland, Ireland, and the Netherlands, replaced their national currencies and introduced a single European currency: the Euro. Britain and Denmark are also hoping to soon join this great coalition (Knot 1). The Euro is the official currency in the twelve participating countries. Bills and coins of the national currencies will remain in circulation or may eventually die out. This event is one of astronomical historical importance as it unifies Europe into one massive economic force. The transition of the Euro into the world market as paper money will start in 2002. It has many people wondering how the Euro will affect Europe and the world. The future looks optimistic as this is a major step in the unification of an otherwise separated area. The introduction of the Euro will be beneficial to Europe and the world as a whole through improving travel and trade inside of Europe, stabilizing the economies of other currencies and bringing all of Europe one step closer to the ideal of unification.The introduction of the Euro will facilitate travel in Europe by reducing hassle and expense. Imagine going to Europe and traveling through the many small countries. Don't forget to convert your Deutsch Marks, Franks, Guilder, Drachma, Kroner, Florints, Lira, and Schillings. Looking for the best deal and finding places to change your money can turn into a huge headache. When using the Euro one does not lose time and money by paying for new currencies between every small country. In Europe many of the countries are small and close together. Living in a large state like Texas it is hard to visualize how a person living in Liechtenstein can hop over to Switzerland after work to see a friend and make it home by dinnertime. Most people who live such lives have to keep two kinds of money handy in their pocket, even if they don't plan to drop by Bulgaria. Those people must keep track of many currencies as a daily part of their life. Tourists are also struck with a similar problem. Imagine a pair of tourists in their Bermuda shorts trying to figure out complicated exchange rates. Most tourists barely know the languages of the countries they travel too; any halfway decent con artist or corrupt official wanting to make a quick buck could easily scam them. Many tourists spend only a short amount of time in each country. Having to exchange so much money becomes very inconvenient and inefficient. Tourists might not bother changing money if they are only going to spend half a day in Liechtenstein, or they might run out of the local currency and not be able to spend as much as they would want to, in which case the local economy is affected (McDonald 3). In a short while, with the Euro, this will all become a thing of the past. Tourists will need only exchange money one time to satisfy their...

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