Analysis of Fiscal, Monetary, and Exchange Rate Articles

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Background and Data:
The euro (€) is the official currency of the Eurozone, which consists of 17 EU member states using this currency. The euro is also the 2nd largest reserve currency as well as the 2nd most traded currency in the world after the United States dollar. As of November 2013, with more than €951 billion in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar. The US dollar ($) is the official currency of the United States and its overseas territories. Just like the euro there are other currencies pegged to it, such as the Bermudian Dollar. The US dollar is the fiat currency most used in international transactions and is one of the world’s most dominant reserve currencies.
After the 2008 market crash the exchange rate between the US Dollar and the Euro has been increasing. While the Euro continues to gain value, the US Dollar has yet to fully recover the value it had before the market crash. As seen in figure 7 it costs more US dollars to buy 1 Euro than it has in the past two years. Figure 8 shows that the US dollar has depreciated against the Euro but has appreciated against the Pound Sterling, the Australian dollar, and the Canadian dollar.

Simple Synopsis of Article: After a European Central Bank official said that the Euro, European money, showed no signs of its price falling, the US Dollar reached the lowest level it has been against the Euro for the past 2.5
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