January 1, 1998 - Euro, single European currency, introduced for use by European businesses (global currencies previously tied to dollar, linked to gold); June 1, 1998 - European Central Bank opened in Frankfurt, Germany.
January 1, 2002 - The euro became legal tender for European consumers - currency of 15 countries, 320 million people; replaced Deutsche Mark, French franc, Italian lira, Spanish peseta, Greek drachma, Austrian schilling, Belgian franc, Finnish markka, Irish pound, Luxembourg franc, Dutch guilder, Portuguese escudo; around 7.8 billion euro notes, 40.4 billion euro coins (worth €144 billion) put into general circulation by central banks of twelve participating countries of euro area; euro notes distributed by bank machines; shops started to give customers change in euro cash.
Euro - (http://www.civitas.org.uk/eufacts/ graphics/euro.jpg)
More successful than ever imagined:
1) European Central Bank has kept inflation in check
2) Prices rose an average of 2.1% /year over last 10 years
3) No politician has made serious attempt to undermine Central Bank's role
4) No country has seriously considering leaving European Union
"Behavioral influence" of common currency limited - no reform policies by unions, politicians; divergence in economic performance amongst members = distribution of risk.
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