First, the role of an international currency and the likelihood that the euro could displace the dollar to some extent over the years ahead; second, the pros and cons associated with having a preeminent international currency; third, the role that the exchange rate plays in monetary policy formulation; and, finally, the implications of the euro for international monetary cooperation.
Today marks the 81st trading day of the euro since its debut on January 4. Since its introduction, Europe’s single currency has depreciated against the U.S. dollar by nearly 9 percent.