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The war of currencies in a globalized economy

Author: 
Megi Marku
Subject Area: 
Social Sciences and Humanities
Abstract: 

The dollar and euro reflect at best their countries destinies and they are the rulers of the world. With a difference of about 200 years with each other these two coins are the focal point of the finance and by their performance depend the economic performance of the major part of the world. The fact that European nations created a union between them is always considered as a rivalry against the United States, and once that EU emitted the common European currency, it was described as a challenge to the dollar. The beginnings of the euro haven’t been so good given that has there was a depreciation of its currency against the U.S. From this fact the whole world had the impression that the EU wouldn’t last for a long time, but with the passing of years it was showed that this assumption was fair enough since the euro continues to be valued higher than the dollar. The purpose of this topic is to demonstrate the advantages and disadvantages of each of the currencies in the global economy. Also, a comparative analysis is made between the two currencies to see which of them is likely to rule the world in the future.

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