Some countries that are close to Europe that already hold Deutschemarks, clearly would automatically hold euros, those are countries in Eastern Europe mainly, a few countries in Africa.
In the United States, securities markets are much more developed than they are in Europe.
Back in those days, in the fifties and sixties, countries had balance of payment’s deficits or surpluses, those were reflected much more than today in movements of reserves among countries.
To the extent that the United States has, I don’t like the word hegemony, the United States has influence around the world, I don’t think that’s based on to any significant degree on the fact that countries use the dollar as their major reserve.
Love can be understood only ‘from the inside,’ as a language can be understood only by someone who speaks it, as a world can be understood only by someone who lives in it.
On private transactions, I’ll just go very quickly now, a major difference between the United States and Euroland is that in Europe banks are much more important in financial transactions than in the United States.
Another question has been raised rather widely in Europe, in Japan as well as in the United States is what, to what extent will the euro become a reserve currency.
The prices of all imports would rise if the dollar depreciates.
There’s a stability and growth pact which was agreed for the eleven countries which tries to limit the size of budget deficits among the eleven countries.
The dollar is currently the principal reserve currency in the world.