European Union Single Currency Policy Essay Example | Topics and Well Written Essays - 3000 words

European Union Single Currency Policy - Essay Example This paper illustrates that the European â€Å"dollar hegemony, thawed out frozen masses of immobilized capital, increased the volume and value of international trade, and opened and expanded markets on a vast scale. It created pressures that, if not irresistible, at least required better and more tenacious defenses, opened horizons beyond anything previously imaginable, yet also posed new regulatory challenges†. There are many advantages and disadvantages in implementing a change of work, place, policy, statute, condition or environment. There are successes, failures, and depression brought about by the fluctuations in a currency's market price. The following paragraphs explain the nuances of the single currency European Union economy and other related topics which are pegged on the European Union Dollar. European Union single currency policy is beneficial to its member countries. The potential benefits, as well as expenditures of the single European Monetary Unit, had been d iscussed at length in the European Commissions study entitled One Market, One Money. This report gave four major benefits that the single currency would bring to European Union member countries. The first benefit is the reduction in transaction costs. The second benefit is the reduction in risk. The third benefit would be the increase in competition. The last benefit would be the emergence of an international currency to compete on equal footing with the United States dollar. The first benefit is the reduction in transaction costs. The reduction of the transaction costs is connected with the decrease in the need to exchange the currency when one European Union Country like the United Kingdom would have to endure when buying a car from Germany, another European Union member state. Some of the members of the European Union include Sweden, Finland, Latvia, Lithuania, Denmark, United Kingdom, Ireland, Germany, Belgium, Luxemburg, France, Portugal, Spain, Italy, Austria, Hungary, Romania , Bulgaria, Poland and Slovenia.