Comments on: Trichet on the Euro as Reserve Currency http://www.aleablog.com/trichet-on-the-euro-as-reserve-currency/ Alea Jacta Est Wed, 03 Mar 2010 18:43:34 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: JCL http://www.aleablog.com/trichet-on-the-euro-as-reserve-currency/#comment-3605 JCL Wed, 18 Nov 2009 18:13:26 +0000 http://www.aleablog.com/?p=4382#comment-3605 LOL who the hell would ever think the Euro is on the stage of reserve currency contenders? Folly to look at sterling, euro. Sould suggest looking at SDRs or something new but similar LOL who the hell would ever think the Euro is on the stage of reserve currency contenders? Folly to look at sterling, euro. Sould suggest looking at SDRs or something new but similar

]]> By: A. Dawn http://www.aleablog.com/trichet-on-the-euro-as-reserve-currency/#comment-3604 A. Dawn Wed, 18 Nov 2009 15:09:02 +0000 http://www.aleablog.com/?p=4382#comment-3604 If Euro becomes the reserve currency, Euro-zone growth will be in serious trouble. If Euro becomes the reserve currency, Euro-zone growth will be in serious trouble.

]]> By: Lord http://www.aleablog.com/trichet-on-the-euro-as-reserve-currency/#comment-3603 Lord Tue, 17 Nov 2009 18:37:44 +0000 http://www.aleablog.com/?p=4382#comment-3603 Unless they are willing to run large semi-permanent current account deficits, it will never reach reserve status. Unless they are willing to run large semi-permanent current account deficits, it will never reach reserve status.

]]> By: David Merkel http://www.aleablog.com/trichet-on-the-euro-as-reserve-currency/#comment-3602 David Merkel Tue, 17 Nov 2009 18:01:34 +0000 http://www.aleablog.com/?p=4382#comment-3602 True enough. Being the reserve currency means having enough safe and generic debt to reinvest their proceeds from export transactions, and liquidate easily for import transactions. The Eurozone has some strong governments -- but the debts of any one government are not generic. Perhaps it would make sense to create some sort of exchange traded fund that contains fixed proportions of Eurozone debt, with standardized maturities. I would ladder it like a stable value fund over 5 years. Enough dreaming... the Euro experiment continues. But then, so does the American experiment. True enough. Being the reserve currency means having enough safe and generic debt to reinvest their proceeds from export transactions, and liquidate easily for import transactions. The Eurozone has some strong governments — but the debts of any one government are not generic. Perhaps it would make sense to create some sort of exchange traded fund that contains fixed proportions of Eurozone debt, with standardized maturities. I would ladder it like a stable value fund over 5 years.

Enough dreaming… the Euro experiment continues. But then, so does the American experiment.

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