As Europe eyes America's erratic leadership and China, it looks to boost the role of the euro.
A radical idea from the central bankers summit in Jackson Hole, Wyo.: Invent a currency like Facebook’s Libra to replace the dollar’s global role.
One of the few areas where the euro comes close to matching the greenback is in global payments and invoicing, where both currencies account for about 40% each, according to European Central Bank figures. “By some measures, the euro plays no larger a role than the Deutschemark and French franc that it replaced,” according to a new study by economists Ethan Ilzetzki, Carmen Reinhart and Kenneth Rogoff.They argue that “a central reason is the scarcity of high-quality marketable euro-denominated assets, and the general lack of liquidity compared to dollar debt markets.
In fact, no currency has ever gained predominance without liquid markets in a benchmark asset, said Eichengreen. Economists have tended to measure a currency’s global role by looking at its use in international reserves for central banks and big private investors. But more recently, they have started to pay more attention to a different barometer: the currency choice for trade invoicing and transactions.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Trump: I was asking Zelensky to help America, not meIt depends upon what the meaning of the word “us” is.
Consulte Mais informação »
London Mayor says Trump appears to care only about white AmericaThe Mayor of London, Sadiq Khan, says Trump's divisive rhetoric gives the impression the US President cares only about white Americans
Consulte Mais informação »
Leaders learn the hard way that Trump will be Trump at NATO meetingAt the outset of NATO's 70th anniversary meeting, which was meant to promote the unity of the alliance, no one doubted President Donald Trump's ability to disrupt, and he didn't disappoint, taking his tactics to a new level.
Consulte Mais informação »
Fox hosts rally to defend Trump after president mocked at NATO: 'They're mad because Trump dominated'Fox News hosts quickly came to the defense of 'dominant' President Donald Trump after a video emerged of world leaders apparently mocking the president at a NATO reception.
Consulte Mais informação »