The Rise of the Euro

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The most common currency used by nations in the European Union is the "Euro." It is reported by Claire Connaghan of the Wall Street Journal that the Euro has hit a record high in the past two years. This strength in currency has many economic and political impacts. Economically, it gives monetary leeway for nations who use the Euro. It also gives the European Central Bank (where the Euro is governed and printed) no reason to alter its steady interest rate at a quarter of a percent, 0.25%. The Euro surpasses the United States dollar, the Japanese Yen, it is close to passing the English Pound Sterling, and "marches higher against" pretty much every other currency in the modern world. The Euro's most recent success is attributed to certain, calculated factors. The European Central Bank's President, Mario Draghi, said the European Central Bank does not plan on taking action to increase measures used to further fund the bank unless necessary. This and their reluctance to shift the interest rate increases the strength of the Euro by marginal yet critical numbers. An adverse effect of this phenomenon is deflation. The Euro has issues maintaining a healthy inflation rate, and is much below the ideal target point. All in all, one should expect a positive slope for the Euro.