oussama94
05-28-2017, 23:19
Some concerns also exist regarding the ECB’s effectiveness as a central
bank. While its target inflation is slightly below 2 percent, the euro
area’s inflation edged above the benchmark from 2000 to 2002, and has
of late continued to surpass the self-imposed objective. From 1999 to late
2002, a lack of confidence in the union’s currency (and in the union itself)
led to a 24 percent depreciation, from approximately $1.15 to the dollar in
January 1999 to $0.88 in May 2000, forcing the ECB to intervene in foreign
exchange markets in the last few months of 2000. Since then, however,
things have greatly changed; the euro now trades at a premium to the dollar,
and many analysts claim that the euro will someday replace the dollar
as the world’s dominant international currency. (Figure 2.6 shows a chart
of the euro since it was launched in 1999.)
bank. While its target inflation is slightly below 2 percent, the euro
area’s inflation edged above the benchmark from 2000 to 2002, and has
of late continued to surpass the self-imposed objective. From 1999 to late
2002, a lack of confidence in the union’s currency (and in the union itself)
led to a 24 percent depreciation, from approximately $1.15 to the dollar in
January 1999 to $0.88 in May 2000, forcing the ECB to intervene in foreign
exchange markets in the last few months of 2000. Since then, however,
things have greatly changed; the euro now trades at a premium to the dollar,
and many analysts claim that the euro will someday replace the dollar
as the world’s dominant international currency. (Figure 2.6 shows a chart
of the euro since it was launched in 1999.)