The Euro in the International Arena

This article explains the author point of view about two questions : - « Does the euro’s exchange rate with the dollar really matter ? » - « What has been the impact of the euro on foreign investment in Europe ? » Beyond their purely technical aspects, both questions relate to the whole set of doubts on the international consequences of the euro’s growing role. The author doesn’t think that the euro’s introduction in the international monetary arena present a serious threat to stability. The three arguments of those who expect an increase exchange rate instability, i. e. the « openness argument », the « portfolio argument » and the «hegemonic argument », are weak. JEL classifications : E42, F31Alphandéry Edmond. The Euro in the International Arena . In: Revue d'économie financière (English ed.), n°62, 2001. Banking and Financial Europe after the Euro. pp. 63-70