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AbstractThe existence of Europe is already more important than ever. This is because Europe is a living example of nations trying to peacefully prosper together in spite of all the doubts and differences, and continuing to collectively represent certain values. Development of a 'single European payments app' can help Europe become a soft and sharp global superpower with sensitivity, strong in consumer protection, leading in the field of advanced technology.

Examines the euro's weakness since its inception & considers its role & implication in the world economy. Four explanations are proffered for the euro's surprise depreciation: (1) change in the nature of hedge funds; (2) the unprecedented success of the US economy; (3) the euro's weakness itself; & (4) problems with the European Central Bank. It is argued that the depreciation of the euro does not mean it cannot play a key international role in much the same way as the US dollar, which trends toward depreciation against other major currencies. In this light, the three basic types of currency use are discussed as potential roles for the euro: medium of exchange, store of value, & unit of account. How US & UK budget deficit reduction might work in the euro's favor by diminishing their government bonds is considered in terms of leaving euro-denominated government bonds as an alternative for risk averse investors; thus, the euro, as a viable alternative, can provide some global stability. An appendix touches on the euro's recent appreciation in terms of the four explanations cited above. 1 Table, 6 Figures, 1 Appendix, 13 References. J. Zendejas

During the past 4 years, faith in the present financial model has been shaken in terms of policy, regulation, the financial sector itself, and exchange-rate regimes. Past and present policies of the world's most respected central banks have come under fire. Regulations that defined the system have undergone major reviews. Complicated financial instruments that provided new ways of financial intermediation have been exposed as culprits behind the financial meltdown. After 10 years of success, Europe's single currency is under threat. In short, the established financial model not only has been u

This book records the first success stories of a new form of financial intermediation, the hometown investment fund, that has become a national strategy in Japan, partly to meet the need to finance small and medium-sized enterprises (SMEs) after the devastating earthquake and tsunami in March 2011.The hometown investment fund has three main advantages. First, it contributes to financial market stability by lowering information asymmetry. Individual households and firms have direct access to information about the borrowing firms, mainly SMEs, that they lend to. Second, it is a stable source of

During the past 4 years, faith in the present financial model has been shaken in terms of policy, regulation, the financial sector itself, and exchange-rate regimes. Past and present policies of the world's most respected central banks have come under fire. Regulations that defined the system have undergone major reviews. Complicated financial instruments that provided new ways of financial intermediation have been exposed as culprits behind the financial meltdown. After 10 years of success, Europe's single currency is under threat. In short, the established financial model not only has been unable to prevent the crisis but, arguably, has been a cause of it. There is no longer one obvious model that meets all needs. The burst of Japan's bubble was followed by two "lost decades." Before a contrite Japan completely adopted Western ways of finance, the "Lehman shock" hit, followed by the euro crisis. Monetary policy, financial regulation and the state of the financial sector all must be reconsidered. Currencies and exchange rates make up another important aspect of finance. If the Western model of finance is discredited, does that mean the dominance of Western currencies is also eroded? What does the crisis in the euro area tell us about exchange rate regimes in general? Clearly, a new model is needed, one that is conducive to both stability and prosperity. But who will provide it? This volume records the cumulative results of three EU Studies Institute (EUSI) conferences that have addressed these issues, and examines how Asia and Europe compare in the quest for the next financial model. While many books on Europe and Asia focus on integration and what Asia can learn from Europe, this book emphasizes mutual lessons in the common search for a new model

This book records the first success stories of a new form of financial intermediation, the hometown investment fund, that has become a national strategy in Japan, partly to meet the need to finance small and medium-sized enterprises (SMEs) after the devastating earthquake and tsunami in March 2011. The hometown investment fund has three main advantages. First, it contributes to financial market stability by lowering information asymmetry. Individual households and firms have direct access to information about the borrowing firms, mainly SMEs, that they lend to. Second, it is a stable source of risk capital. The fund is project driven. Firms and households decide to invest by getting to know the borrowers and their projects. In this way the fund distributes risk but not so that it renders risk intractable, which was the problem with the "originate and distribute" model. Third, it contributes to economic recovery by connecting firms and households with SMEs that are worthy of their support. It also creates employment opportunities, at the SMEs as well as for the pool of retirees from financial institutions who can help assess the projects. Introduction of the hometown investment fund has huge global implications. The world is seeking a method of financial intermediation that minimizes information asymmetry, distributes risk without making it opaque, and contributes to economic recovery. Funds similar to Japan's hometown investment fund can succeed in all three ways. After all, the majority of the world's businesses are SMEs. The first chapter explains the theory behind this method, and the following chapters relate success stories from Japan and other parts of Asia. This book should encourage policymakers, economists, lenders, and borrowers, especially in developing countries, to adopt this new form of financial intermediation, thus contributing to global economic stability

Japan: the Lost Decade, by Sahoko Kaji
In just 10 years, from the beginning of the 1990s, Japan moved from being a universally admired economie model to emerge as the problem child of the G7. There are many indicators of crisis: negative growth in GDP, rising unemployment, bankruptcy of financial institutions and excessive public borrowing. Up to 2001 successive governments preferred to manage the crisis with short term measures without addressing the core issues. But the new Prime Minister, Junichiro Koizumi, has, since his élection, piled on the structural reforms: recasting the financial intermediation System, privatisation and dereglementation, modernising the taxation system, resolution of the doubtful debts issue, reinforcing the social security system, and emphasising the role of the individual. The objective is to turn Japan into a country more open to the rest of the world, and more competitive with other countries. But Japan can only undertake this metamorphosis, which would be comparable with the Meiji era, if public opinion stays on Koizumi and the reformers' side accepting painful decisions in exchange for a better future.