• Research Paper on:
    Single Euro Currency

    Number of Pages: 12

     

    Summary of the research paper:

    In twelve pages and 2 parts this paper discusses the single Euro currency in terms of criteria meeting by the member nations and its pros and cons. Nine sources are listed in the bibliography.

    Name of Research Paper File: TS14_TEcurn02.rtf

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    Unformatted Sample Text from the Research Paper:
    the economic and policy determinations of over 400 million people in 15 European countries, and will result in the largest gross national product in the world (Schlessinger, 1994). Not  all countries have joined, and another ten Eastern European countries have applied to join, so this is likely to increase in size even further. For a project such as  this to succeed there was a need to lay down harsh economic criteria to ensure currency and economic stability within the area. However, these brought both advantages and disadvantages. This  paper is written in two parts. The first part will consider the criteria and the way it has or ha s not been met by different countries both before and  after convergence and the adoption of the single currency. The paper will then consider the way advantages and disadvantages this brings. The  convergence criteria were laid down by the Maastricht treaty in 1992, and were seen as necessary in order to bring the economies of the different countries into the sme cycle  and into the same relative position to ensure stability within the currency once in operation. The government spending must be under control, with the total amount of government borrowing  not exceeding 60% of the GDP, the government deficit needs to be no more that 3% of GDP (Bloomberg, 2002). Inflation needs to be under control, not exceeding 1.5% of  the average of the best three countries within the EU, and the long-term interest rates should be within 2% of the average interest rate of the same three countries with  the lowest inflation rate (Bloomberg, 2002). Before entrance into the currency there also needs to have been a minimum of two years stability within pre-set bands in the margins set 

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