2. WhatIsEuro?
Theeuro was founded by 1
November 1993 in Netherland
that many countries that are
part of the EuropeanUnion now
use.
Thesymbol for the euro is "€"
and its abbreviation is "eur."
3. After world war 2 all country's are Economically
fully collapsed
• At the time European country's came
agreement single currency to use
• 28 country's are partners
• Population of European 450 millions
HISTORY OF EUROPEAN UNION
5. Europe'sMoveToward
One
Starting on January1,
2002, mostEuropeans
exchangedtheir
changeand paper
money for adifferent
kind of coins and
banknotes. Theytook
their Frenchfrancs,
German marks, Dutch
guilders, and other
national currencies to
the bank and traded
them in foreuros.
6. Tohelp easeexchange
rate volatility among
different European
nations, which hindered
investment by
companies in various
states, the European
Union (EU)developed
the EuropeanMonetary
Systemin 1979. This
concept led to the
creation of theEuropean
CurrencyUnit.
7. European central bank has
It seat in Frankfurt in Germany
Established :1 June 1998
President : Mario Draghi
Reserves : 0.526 trillions
Bank rate : 0.00%
Interest rate : -0.40%
Preceded by: 19 central banks
Unemployment rate : 7.1
GDP : 19.670 Trillions
European central bank
9. • While the euro has brought stability to European economies, the
system does havelimitations.
• All nations that operate under the euro system must, by default, have
the same interestrate.
• This has created strains on some economies, such as Germany. If its
economy slows, the government cannot lower interest rates to
stimulate growth.
• Despite using a common currency, all European nations have not
performed equallyeconomically.
• While some nations experiencedgrowth in exports, otherswere in
decline.
• While some have gained competitiveness,some have fallen behind.
• Thehope of some toward political unity is still far from the horizon.
22. Date
Event Effect
1 18 September 2007
Fed cuts Fed funds
rate by 50 basis points
Euro strengthened
against dollar
2 16 December 2008
Fed cuts rates to near
zero
Euro strengthened
against dollar
3 19 October 2009
The newly-elected
Greek government
revises deficit
forecasts from 6.7%
of GDP to 12.7% of
GDP
Euro weakens against
dollar
Euro and usd correlation $
23. 4 1 June 2011
Moody's downgrades Greek
debt by seven notches to
junk status
Euro weakens against dollar
5 18 December 2013
Fed announces 'tapering' of
stimulus will begin in January
2014
Euro weakens against dollar
into February 2014
6 14 July 2014
ECB president Mario Draghi
prepares the market for QE,
saying it ' falls squarely in our
mandate.'
Euro weakens against dollar
7 22 January 2015 ECB introduces full blown QE Euro weakens against dollar
