Optimal Currency Area Theory And Practice——On Euro's Foundation, Performance And Prospects

The mile-stone of EuroPean Economic and Monetary Integration -A Euro # came iflto birth with the new-year bell on January 1, l999. After thefounding of Euro, its exchange rate falls to a historical low record repeatedly.The trend in Euro raised deep concems and worries f Is it unlucky to be bomat such a time? Is there any problem in the course of preparation andoperation? And how will it develop in the futuYe? These constitute the mainitems of this thesis.First of all, this thesis traces the founding and developing course ofEuropean Economc and Monetary Union (EW and Euo, and analyses theconditions of Euro in practice by probing illto the theoretical basis backing theissuance of Euro -- A Optimal Currency Area Theory #.Secondly, this thesis reviews briefly the tf end of Euro's exchange ratesince the beginning of l999, and analyses deeply the reasons for the contnuedwetheess of Euro and the allitude towards the rise and fal of Euro fromEuropean Central Bank (ECB). Then, this thesis emPhasizes the full proofs ofthe prospects of Euro, and the most imPortat view of this thesis is presented;Although EUro is still under the softened pressure in the near short time, it isbelieved that the Euro wll be most like1y to lift out of weboess and return tobullish trend from a long term poillt of view.Finally, this thesis exPounds the enlighenment from the birth of Euro andthe practice of the Optima1 Currency Axea Theory, and pllt forward the idea andconception abollt the foundation of Asian single currency by referring to theexPerience of Euro.