UPDATE ON THE EURO AND ITS IMPACTS (March 5, 1999)
Since its implementation, the new EURO currency unit has eroded relative to the U.S. dollar.
If this trend continues both major currencies could be priced at one dollar. At such a moment, each unit would financially reflect the other. Theoretically, they would be the same though not identical.
However, an agreement would make it so. With Argentina debating the merits and risks of dollarizing its money and eleven countries unified their individual currencies with the EURO, it is conceivable for another monetary consolidation. It may well be the dollar with the euro. A return to a paper promise "gold standard" so to speak. This is illustrated by the many of the world's central banks selling off their gold reserves and replacing those assets with paper assets or claims.
One present impact of the weaker EURO is a concerted attempt to bolster European exports and stimulate that region's economic activity.
By removing various economic boundaries and obstactles, greater efficiencies should develop among participants. For example, new telecommunications arrangements should be similarly priced in these nations or regions. This is particularly the case if they are wireless. With satellites it generally does not make a difference from where you maintain the systems.
Eventually, however, the physical location of a satellite may have greater or lesser value due to its orbital location relative to serviced areas.
For more EURO CURRENCY UNIT information, resources, and links connect to Barkley's Euro Resources Desk.