ABSTRACT
In 2010, the euro experienced a period of declining value in relation to the US dollar. Some
critics complained that the European Central Bank (ECB)—the central bank that nations
using the euro charge with regulating the quantity of euros in circulation-was not doing
enough to restrain the euro’s steady depreciation against the dollar. ECB officials argued,
however, that the dollar was somewhat “overvalued” relative to the euro, which had previously
experienced its own interval of persistent depreciation relative to most world currencies.
