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The Euro and the U.S. Dollar: Reserve Currency Rivalry in the 21st Century - A Review

Author

Listed:
  • Rafael Acevedo

    (Menard Family Center for Economic Inquiry, Creighton University, Omaha - NE, USA; University of Illinois Springfield, USA; Western New Mexico University, Silver City, USA; and Econintech, Miami - FL, USA)

  • Maria Lorca-Susino

    (Department of Economics, University of Miami, Coral Gables - FL, USA; and Econintech, Miami – FL, USA)

Abstract

This article offers a historical overview of the introduction of the euro as a common currency and an in-depth analysis of its process of internationalization, which led it to become the second most widely used reserve currency, after the U.S. dollar. It presents a systematic literature review using a narrative approach to analyze historical data and statistics. Its objective is to determine whether the Euro has become not only an international currency but also a reserve currency capable of challenging the hegemony of the U.S. dollar as the world's primary reserve currency since WWII. The findings suggest that the U.S. dollar's status is shaped by a variety of political, economic, fiscal, military, and social factors that impact its global position. Consequently, if the U.S. government were to implement policies that would undermine this standing, the euro could potentially become the reserve currency of the world.

Suggested Citation

  • Rafael Acevedo & Maria Lorca-Susino, 2024. "The Euro and the U.S. Dollar: Reserve Currency Rivalry in the 21st Century - A Review," Economic Research Guardian, Mutascu Publishing, vol. 14(2), pages 176-202, December.
    • Handle: RePEc:wei:journl:v:14:y:2024:i:2:p:176-202
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    More about this item

    Keywords

    Euro; U.S. dollar; International currency; Reserve currency;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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