POLITICAL ROOTS OF THE MONETARY SYSTEM IN THE EUROPEAN UNION AND IN THE UNITED STATES OF AMERICA: THE EUROPEAN EURO VS THE U.S. DOLLAR

Abstract

The year 1776 will be remembered for the birth of the United States of America and for the publication of "The Wealth of Nations" by Adam Smith. The United States had a British and French heritage, but a Spanish heritage as well. Until 1857 the United States used the monetary system of the Spanish empire, the "Real de a ocho" known as the “Spanish dollar”. In Europe, 180 years later, another form of political, economic and monetary integration emerged. The European Communities were born out of old countries and the European integration emerged peacefully for the first time in its history. The European Union adopted the common currency, the Euro, which replaced the national currencies of the countries that belong to the Eurozone. The Euro was attacked by Euroskeptics and Americans that turned the dollar into the currency of the new world order. This article examines the political foundations of the American and the European Union monetary system. The euro evolved and defies the dollar. Facts mentioned in the article show the failure of some predictions against the Euro.