Question

Questions: 10: Why is the formation and use of the euro considered to be of such a great accomplishment? Was it really needed? Has it been successful?

Question 18: What choices do you believe that China will make in terms of the Impossible Trinity as it continues to develop global trading and use of the Chinese yuan?

Answer 1

Answer10:

The euro provided several economic advantages to the citizen of the EU. Travel was made easier by removing the need for exchanging money, and more importantly, the currency risks were removed from European trade. Now a European citizen can easily identify the best price for a product from any company in member nations without first running each price through a currency converter. This makes prices across the EU transparent and increases the competition between members. Labor and goods can flow more easily across borders to where they are needed, making the whole union work more efficiently.

The biggest benefit of the euro is that it is managed by the European Central Bank. The ECB has to balance the needs of all the member nations and therefore is more insulated from political pressure to inflate or manipulate the currency to meet any one nation's needs.The euro has removed much, but not all, of the politics from the European currency markets, making it easier for trade to grow. Hence,it was much needed and it has been successful to a great extend.