JEL Classification: N 24; N14
Polagnyn D. D., Department of Public, Corporate Finance and Financial Intermediation, Yuriy Fedkovych Chernivtsi National University, Chernivtci, Ukraine
Boridka A. Y., student, Yuriy Fedkovych Chernivtsi National University, Chernivtci, Ukraine
DEVELOPMENT AND FUNCTIONIND OF EUROPEAN CURRENCY SYSTEM
Introduction. In modern conditions of economic development the significant position takes European currency. Therefore, the regulation of economic relations, the implementation of payments in the conduct of monetary transactions at the international level make use of one currency, such currency for the EU is the euro.
Purpose.Therefore, the research is done in this article confirming that it is one of the leading currencies in the world. The subject of development and functionality of the European currency is also considered. Euro is one of the defining factors in the world economy.
Result. The high prevalence of the creation of the European currency system among other EU countries was revealed. It was investigated that the creation of the ECS was a stabilizing factor in relation to prices and rates within the EU, which contributed to the formation of a single market. However, it did not solve the problem of implementing a common currency policy.
Conclusion. It is substantiated that in general, assessing the prospects of the world currency system in terms of balanced and strategic behaviour of European politicians and financiers, it was predicted to gradually increase its role and the replacement of the dollar’s position against the euro to a certain relation in favor of euro.
Keywords: euro, European currency system (ECS), currency, prospects.
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