As firms strain to meet that excess demand, they not only increase their prices but also bid up wages and the prices of other inputs as they compete with other firms for workers and materials.
The euro will no doubt contribute to enhancing trade and investment within the region and will be a model for other regions in the world. And it will take some time to get clues to what extent the euro will play the role of a key currency and lead to the stability of foreign exchange rates between major currencies.