The Euro-zone Formation, Operation And Its Impact On China Analysis

On 1 January, 1999, Euro, the European currency, officially started in such eleven European countries as France, Germany, Italy, Holland, Belgium, Luxembourg, Ireland, Austria, Finland, Spain, Portugal. As an inevitable outcome of the European economy and monetary integration, Euro has been fundamentally successful ever since its birth. The ability to regulate and control Euro by EU Central Bank has been improved, the influence of Euro has been further expanded, and the economy in Euro area has been progressing smoothly. Although the exchange rate of Euro against US dollar had not remained stable after Euro's initiation, the great vitality and profound influences in both political and economic areas of Euro should not been neglected. The study in Euro is of vital significance to both Sino-Europe cooperation and China's economic development. This article is composed of 7 parts. The part of introduction explains the purpose and significance of this article, theoretical basis and study method, and the structure of this article and conclusion.Chapter one provides the historic background and development of Euro, elaborating the process of European monetary integration and the three steps for initiating Euro.Chapter two mainly discusses the 'Optimal Currency Area Theory', the theoretical basis for creating Euro, and expounds development of the this...