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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
ISO 4217 code for the euro. It was introduced in 1999 in hopes of integrating the economies of the European Union. At introduction, it was an accounting currency; banknotes entered circulation in 2002. After the U.S. dollar, the euro is the most traded currency in the world, and it is the second-largest reserve currency. It circulates in the eurozone, which includes a majority of the states in the European Union. It was intended to remove the exchange rate risk of businesses participating in the EU's common market and free trade association. Proponents of the euro state that it is more valuable than the former currencies, while opponents say that it has made goods and services in their home countries more expensive. A number of countries outside the eurozone have formally or informally adopted the euro as well. See also: ECU, EMU, European Central Bank.
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