On January 1,1999, the world witnessed a change ne

On January 1,1999, the world witnessed a change never seen before: eleven nations of the European Union fixed their currencies to each other and established the worlds first common currency, the Euro. The creation of a single European currency will be the most important development in the international monetary system since the adoption of flexible exchange rates in the early 1970. The dollar will have its first competitor since it replaced the pound sterling as the world dominant currency during the post-war period after World War I, and it consolidated after World War II. The political impact of the Euro will be at least as great. A bipolar currency regime dominated by Europe and the United States, with Japan as a junior partner may replace the dollar-centered system that has prevailed for most of this century. …

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