IDEAS home Printed from https://ideas.repec.org/p/iik/wpaper/18.html
   My bibliography  Save this paper

Prospects for the Euro: A Role For China and India

Author

Listed:
  • Bala Batavia

    (DePaul University)

  • Parameswar Nandakumar

    (Indian Institute of Management Kozhikode)

  • Cheick Wague

    (Sodertorn University of Stockholm)

Abstract

In this paper, an attempt is made to evaluate the prospects of the Euro challenging the current dominant position of the dollar as the world’s leading currency. This is done by identifying the factors which lie behind central bank decisions to hold reserves of major currencies. Thus, the determinants of central bank reserve holdings are analyzed for pre-Euro and post-Euro periods. It is expected that developments in major Asian countries will possess greater clout in determining currency relationships in the future. So, the relative world shares of trade and income of Asia, along with other real economic as well as financial variables and oil market developments are used in the estimation process. Different simulations are undertaken to trace possible future scenarios for the euro and the dollar. The simulations indicate that a rise in emerging Asian market share of world output will work towards preserving dollar dominance.

Suggested Citation

  • Bala Batavia & Parameswar Nandakumar & Cheick Wague, 2007. "Prospects for the Euro: A Role For China and India," Working papers 18, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:18
    as

    Download full text from publisher

    File URL: https://iimk.ac.in/websiteadmin/FacultyPublications/Working%20Papers/18fullp.pdf?t=47
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iik:wpaper:18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sudheesh Kumar (email available below). General contact details of provider: https://edirc.repec.org/data/iikmmin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.