But over time, euroland is likely to end up with deeper and more liquid bond and stock markets. And that has the potential to enhance Europe’s share of the global financial industry and the euro’s attractiveness as a major international reserve currency. Of course, this will not happen overnight. It will take time.
As for economic policy, the main change that comes with the euro is the shifting of responsibility for monetary policy from national central banks to the European Central Bank. Beginning this month, a single monetary policy applies across all euroland countries – just as here in Canada we have the same monetary policy right across the country.