The advent of the twenty-first century will certainly not bring an end to the challenges we are facing in a rapidly changing world. Americans will surely adjust to a frenetic pace of change, as we have in the past, but we must recognize that adjustment is not automatic.
Nevertheless, one can observe a correlation, or co-movement, between the international role of the euro in financial markets and the euro area financial account. In particular, the euro area capital outflows in 1999 are consistent with indications that the euro was used more as a financing than as an investment currency.