University of Piraeus. International Strategic Management Association
Abstract
Since the collapse of the Bretton Woods Global International System in
1971, the world economy has experienced significant currency volatility. The
major economies of the world have addressed such volatility differently. The EU
has chosen to follow a monetary union and introduced successfully a new
currency. The U.S. has paid less attention to the fluctuations of the dollar and
has pursued an independent monetary policy to promote national economic
stability. Japan has seen its currency appreciate significantly. This paper argues
that while trade and growth across the globe are doing well, financial
developments are intensifying the competition between the U.S. dollar and the
euro. Three possible future scenarios are developed and discussed.peer-reviewe
