The evolution of Europe’s exchange rate regime

Eight-and-a-half years after its introduction, the euro is now well established as the second world currency. The European Central Bank (ECB) recently published its sixth annual Review of the international role of the euro, which provides a detailed description of the euro's use in the various segments of the financial market and in international trade.

What is the implication of this development for the conduct of economic policy, especially exchange rate policy, in the euro area? My

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