How Is the Euro Working?

Download or read book How Is the Euro Working? written by Great Britain. Parliament. House of Lords. Select Committee on the European Union and published by . This book was released on 2000 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report draws together the evidence from witnesses on how the euro has been and is now working. It does not consider whether the UK should join the EMU or speculate on how the euro might work in the future. In their evidence, all the euro-zone governments assured the Committee that so far, their expectations were being fulfilled and even exceeded. Other evidence suggested that there were many economic advantages and that financial institutions throughout Europe had benefited. The consensus was that the European Central Bank, despite sometimes unfavourable media comment, had done a good job so far and had been more transparent than expected. The Committee notes the potential downside of the "one size fits all" monetary policy which has deprived the national governments and central banks in participating Member States of the possibility of adjusting their economies by alterations to their exchange rates or by differential interest rates. The persistent fall in the external value of the euro was a matter of concern but there was general agreement that the current dollar-euro rate does not correctly reflect economic fundamentals.