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Working Paper

The international monetary system is changing: what opportunities and risks for the euro?

This working paper  argues that the international position of the US dollar is likely to erode in the coming years, though the speed of the process is uncertain. This will create a demand for other currencies to be used internationally as means of payment and store of value. As far as the euro is concerned,  this will result in radical steps towards fiscal and financial integration.

By: and Date: November 2, 2011 Topic: Global economy and trade

After a thirty-year pause, discussions on the future of the international monetary system (IMS) have restarted. This is partly due to the fact that the IMS has facilitated, or at least not prevented, the economic and financial imbalances that led to the recent crisis.

This paper argues that the international position of the US dollar is likely to erode in the coming years, though the speed of the process is uncertain. This will create a demand for other currencies to be used internationally as means of payment and store of value. The most likely candidates for filling the partial vacuum created by the dollar’s decline are the euro and the Chinese renminbi. The probability that the renminbi will eventually become one of the world’s key currencies is very high, but the speed of the process is uncertain.

As far as the euro is concerned, much will depend on if and how the sovereign debt crisis is resolved. Our view is that the crisis will be dealt with and that it will result in radical steps towards fiscal and financial integration. If such steps are taken, the euro will secure both internal stabilisation and a growing international role.

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Podcast

Podcast

Turkey’s economic struggles

Will inflation continue to surge?

By: The Sound of Economics Topic: Global economy and trade, Macroeconomic policy Date: January 26, 2022
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Upcoming Event

Feb
2
14:00

Towards an inventory of corporate subsidies by China, the EU and the USA

In this event panelists will discuss the latest report of the 28th Global Trade Alert Report, 'Subsidies and market access: Towards an inventory of corporate subsidies by China, the European Union and the United States'.

Speakers: Simon J. Evenett, Denis Redonnet, André Sapir and Reinhilde Veugelers Topic: Global economy and trade Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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Upcoming Event

Feb
15
10:30

EU-India relations in a post-COVID world

Closed door event for a a selection of experts on India and the EU to discuss the state and future of EU-India relations.

Topic: Global economy and trade
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Past Event

Past Event

Nonperforming Loans in Asia and Europe—Causes, Impacts, and Resolution Strategies

What can we learn from the experiences of Asia and Europe with regard to NPLs during the financial crisis to help us weather the current and future ones?

Speakers: Rebecca Christie, Luis de Guindos, Alexander Lehmann, Cyn-Young Park, John Fell and Santiago Fernández de Lis Topic: Banking and capital markets, Global economy and trade Date: January 20, 2022
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Opinion

How Chinese competition helps western conglomerates

Firms like GE and Siemens may well find that their decision to split their businesses into multiple companies leads to increased profits and higher stock prices. But recent research indicates that this is not the only way conglomerates can boost efficiency.

By: Dalia Marin Topic: Global economy and trade Date: January 17, 2022
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External Publication

Europe must come together to confront Omicron

Statement published in the renowned British Medical Journal (BMJ) to address the wave of the Omicron variant of SARS-CoV-2.

By: Miquel Oliu-Barton, Guntram B. Wolff and Group of authors Topic: Global economy and trade Date: January 13, 2022
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Podcast

Podcast

Understanding Japan’s economic relations with China

What can Europe learn?

By: The Sound of Economics Topic: Global economy and trade Date: January 12, 2022
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Past Event

Past Event

Global Gateway vs. Belt and Road Initiative

How does the EU's Global Gateway plan compare to China's Belt and Road initiative?

Speakers: Alicia García-Herrero, Guntram B. Wolff and Reinhard Bütikofer Topic: Global economy and trade Date: January 11, 2022
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Opinion

2022 to see monetary decoupling between West and East

It does not look like the new year is going to be calmer than 2021.

By: Alicia García-Herrero Topic: Global economy and trade Date: December 23, 2021
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Working Paper

Timely measurement of real effective exchange rates

This paper contributes to the measurement of monthly consumer price index-based real effective exchange rates with two main novelties.

By: Zsolt Darvas Topic: Global economy and trade Date: December 23, 2021
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Podcast

Podcast

Last but not the least

An overview of economic policy and beyond in 2021.

By: The Sound of Economics Topic: European governance, Global economy and trade Date: December 22, 2021
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Blog Post

European governanceInclusive growth

12 Charts for 21

A selection of charts from Bruegel’s weekly newsletter, analysis of the year and what it meant for the economy in Europe and the world.

By: Hèctor Badenes, Henry Naylor, Giuseppe Porcaro and Yuyun Zhan Topic: Banking and capital markets, Digital economy and innovation, European governance, Global economy and trade, Green economy, Inclusive growth, Macroeconomic policy Date: December 21, 2021
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