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The Euro: An International Invoicing Currency?

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  • Adrien Faudot

Abstract

This article deals with the use of the euro in international trade, particularly as a unit of account. It seeks to analyze the evolution of the single currency in its essential facet of international currency, especially in the academic sphere, by examining the ideas and assumptions made by economists prior to the launch of the euro, right up to today’s crisis. Although data regarding international trade invoicing are scarce, stylized facts reveal that the euro is a high and stable invoicing currency regionally, but not internationally. Indeed, the euro has failed to reach the status of vehicle currency: the euro is used only on specific markets where exporters are able to choose the currency of denomination. Moreover, since the euro was conceived in a neoclassical way, it is subject to institutional concerns, especially a lack of political support to foster a dynamics of internationalization.

Suggested Citation

  • Adrien Faudot, 2015. "The Euro: An International Invoicing Currency?," International Journal of Political Economy, Taylor & Francis Journals, vol. 44(1), pages 51-70, January.
    • Handle: RePEc:mes:ijpoec:v:44:y:2015:i:1:p:51-70
    DOI: 10.1080/08911916.2015.1035990
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    References listed on IDEAS

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    1. Menzie D. Chinn & Jeffrey A. Frankel, 2008. "The Euro May Over the Next 15 Years Surpass the Dollar as Leading International Currency," NBER Working Papers 13909, National Bureau of Economic Research, Inc.
    2. Eric Tymoigne, 2006. "An Inquiry into the Nature of Money: An Alternative to the Functional Approach," Economics Working Paper Archive wp_481, Levy Economics Institute.
    3. repec:fth:eecero:26 is not listed on IDEAS
    4. Reiss, Daniel Gersten, 2014. "Invoice Currency in Brazil," MPRA Paper 59412, University Library of Munich, Germany.
    5. Tavlas, G.S., 1991. "On the International Use of Currencies: the Case of the Deutsche Mark," Princeton Studies in International Economics 181, International Economics Section, Departement of Economics Princeton University,.
    6. Pellegrin, Julie, 1999. "German production networks in Central, Eastern Europe: between dependency and globalisation," Discussion Papers, Research Unit: Economic Change and Employment FS I 99-304, WZB Berlin Social Science Center.
    7. Gibson, Heather D. & Palivos, Theodore & Tavlas, George S., 2014. "The Crisis in the Euro Area: An Analytic Overview," Journal of Macroeconomics, Elsevier, vol. 39(PB), pages 233-239.
    8. Daniel Gersten Reiss, 2015. "Invoice currency: Puzzling evidence and new questions from Brazil," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 16(2), pages 206-225.
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    Cited by:

    1. Miriam L. Campanella, 2019. "Far-Reaching Consequences of U.S. Financial Sanctions. The Dollar Shortage and the "Triffin Moment"," Working Papers 1285, Robert Triffin International.

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