Euro-dollar creation: a mystery story

The article provides in-depth analysis of Euro-dollars and the “Euro-dollar market”. A lack of conceptual clarity has contributed to serious differences in the experts’ explanations of the fast growth of the Euro-dollar business and their evaluation of it. Hence, the author engages in an extensive conceptual and theoretical preparation on the pressing issues and controversies of the subject. While definitive conclusions are not reached on all the issues, the author attempts to show why some conclusions cannot be obtained on the basis of the empirical evidence available at present and why certain conceptual obscurities have led to dead ends. JEL: E44