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Posts Tagged ‘McNamara’

The Euro in Decline

Posted by hkarner - 14. Januar 2018

Date: 12-01-2018
Source: Foreign Affairs By Kathleen R. McNamara

How the Currency Could Spoil the Global Financial System

When the euro was created some 15 years ago, there was speculation that the new currency might come to challenge the dominance of the U.S. dollar as the international reserve currency of choice. But the euro’s guardian, the European Central Bank (ECB), had little appetite for such a role. Likewise, foreign exchange markets showed little support for supplanting the dollar’s hegemony with the euro, despite a move into euro-denominated bonds and a strengthening of the value of the euro over the 2000s. This has meant that the EU has, in large part, played a “helper” role in U.S. financial hegemony throughout the postwar era to today.

But now, Europe’s “helper” status may well be in question. The populist forces that have emerged throughout the continent challenge the legitimacy of the euro and threaten both the institutional and ideational foundations upon which it rests. With this uncertainty arises the possibility of the EU turning into a “risk generator” within the global financial order or perhaps even worse—a “spoiler” of the very system itself. Den Rest des Beitrags lesen »

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