Currency System of Eastern Europe

With a population of 320 million, the European domestic market (meaning Western Europe) is larger than any other industrialized market in the world (Seipp, 1989, p. 300). However, its power has not been realized due to the existing barriers between countries. Goods, people and currency are affected by this array of barriers or restrictions.

The first official recognition of these encumbrances came following the end of World War II when the International Monetary Fund (IMF) and the World Bank were established to assist in the reconstruction of Europe (Solomon, 1981, p. 383). Six of the leading countries then formed the European Economic Community (EEC) in 1957 as a mec

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itzerland have joined the system and it is believed that the Scandinavian countries will follow. Experts believe that eventually Britain will succumb to the pressure to participate in the exchange rate: "Otherwise, it would find itself left out in the cold, even though it is Europe's leading financial center" (Seipp, 1989, p. 302). The trend now is for the EMS to be extended, with the ultimate goal one of setting up a European central bank system comparable to the Federal Reserve in the United States. Europe appears headed in this direction though there is nothing in the C market enabling legislation that actually specifies a common currency to replace the peso, mark, pound sterling, franc and lira (Brimelow, 1990, p. 88). However, plans for one are being considered. Such a move would happen in stages. Excluding the pound, most European Community currencies already are held fairly steady to each other thanks to the EMS. "Over time, this relationship is to become tighter, central banks will coordinate policy more, and eventually both currencies and central banks will merge-one currency, one central bank" (Brimelow, 1990, p.88). Under EMS, most European currencies are tied to the deutschemark. And, traditionally West Germa
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Some common words found in the essay are:
Germany's Bundesbank, Margaret Thatcher, Peter Brimelow, Soviet Union, Riemer Kapstein, Western Europe, Austria Switzerland, Community EEC, Unit ECU, France EMS, riemer kapstein, 1990 88, brimelow 1990, riemer kapstein 1989, brimelow 1990 88, 1989 65, solomon 1981, exchange rate, kapstein 1989, kapstein 1989 65, miller 1988 59, european currency, miller 1988, 1988 59, exchange rate mechanism,
Approximate Word count = 1928
Approximate Pages = 8 (250 words per page)

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