Thursday, October 1, 2009

Book Review: The Euro

The Society of Business Economists published a review of David Marsh's The Euro: The Politics of the New Global Currency (2009). The book focuses on the politics behind the creation, and subsequent development, of the euro, which has become the most successful launch of a 100% irredeemable fiat currency in the history of mankind. The amount of euros in circulation has surpassed that of the United States dollar, and the euro has become the second largest reserve currency worldwide. Ron Paul has said:
"The rise of the euro internationally is another sign that the U.S. dollar is not what it used to be. There is increasing pressure on nations to buy and sell oil in euros, and anecdotal evidence suggests that drug dealers and money launderers now prefer euros to dollars. Historically, the underground cash economy has always sought the most stable and valuable paper currency to conduct business." ("The World's Reserve Currency", January 1, 2007)
Interesting to note is how the design of the European System of Central Banks and the independent European Central Bank that oversees it represented a complete victory for the Bundesbank, even to the extent of locating it in Frankfurt, where the future Oz-like headquarters building symbolizes a towering, powerful force.

Additional book reviews are available from Cayman Financial Review and The New York Times, "Division, Unity, and the Euro".

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