ABSTRACT
The process of monetary unification in Europe — the introduction of the euro as the single currency in the euro area — has to be regarded as a unique historical experience. The integration of euro banknotes and coin from 1 January 2002 will complete monetary unification in a way that will be apparent to all citizens in the euro area. The euro will become the universal transaction medium and the unit of account for retail transactions. Governor Theodoros B. Karatzas, National Bank of Greece, referred to coin and currency meeting the need to 'expedite and systematize commercial transactions'. Exchange-rate uncertainty would be eliminated and transaction costs and hedging costs would be reduced. Andrew Rose's estimates of the impact of currency unions on trade are surprisingly large. Filppo Cesarano starts from the premise that the gold standard was 'the crowning achievement of repeated efforts to dispose of the centuries long tampering with currency by the government'.
