ABSTRACT
The creation of the Eurodollar (EUR) may be seen as being a political scheme of the Mediterranean countries of southern Europe to increase the German inflation rate, while forcing their own countries to diminish their inflation rate with a hope of increasing growth rates. There are three global currencies, the United States (US) dollar, the EUR, and the YEN, with their own inflation rates. The more easily European enterprises can raise money in these liquid European markets, especially for risky and innovative schemes, the more easily they can create new jobs. Some Eastern European countries, like Bulgaria and Estonia, define their currencies through a exchange rate fixed to the EUR. In many cases, the entire banking industry is about the same size as a medium-sized European, US or Japanese bank. A split of Arab countries into two currency areas might lead to different economic and socio-political models of development.
