Global order and the future of the euro

The performance of the euro can be assessed in relation to recent developments in the global economy as well as in relation to the vision of the architects of the European Monetary Union. The author shall consider both perspectives and ask whether the EMU has lived up to the vision of its architects to create a new currency to serve as a bulwark for maintaining price stability over the medium term. The first treats the euro in relation to a map of the world economy that recognizes 3 geographical areas. For the second, the author finds grounds for immediate and long-range concerns with respect to the prospects for the stability of the euro's purchasing power. The immediate concerns arise from the pressures on the ECB to be more accommodative and the drive to weaken the Stability and Growth Pact that culminated recently in its suspension.