Euro

From TinWiki.org

The Euro is the currency used by many European countries. The principle behind having the same currency across Europe is mainly to avoid loss of profit from international trade due to exchange rate fluctuations and to generally make trade between European countries more accessible for less wealthy businesses. The countries that use the Euro are commonly referred to as being in the Euro zone.

Although the implementation of the Euro was aimed at improving the wealth of Europe, some of which was still damaged from the effects of two devastating world wars, in some cases it has been criticized for causing economic slow-down. For example, when the Euro was adopted, the economies of all the Euro Zone countries became linked, and essentially merged, thus the stronger ones were pulled down by the weaker ones. In addition to this, the wide use of the currency is more dangerous some say than having many separate currencies. This would be because were the Euro to crash or go into hyperinflation all the economies in the Euro Zone would be brought down, meaning the transmission of depression would be extremely quick. This is similar to the effect the ill-managed Gold Standard had on Europe during the Great Depression.

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