So if the euro, if Euroland is to become a reserve center, if the euro is to become a reserve currency, Euroland will have to have a deficit in its overall balance of payments.

There’s a stability and growth pact which was agreed for the eleven countries which tries to limit the size of budget deficits among the eleven countries.

To the extent that the United States has, I don’t like the word hegemony, the United States has influence around the world, I don’t think that’s based on to any significant degree on the fact that countries use the dollar as their major reserve.

If a currency is to become a growing, an increasing reserve currency, there has to be not only a demand for it there has to be a supply of it.

There has been talk in Europe about American hegemony being somehow based upon the use of the dollar in the world. I just don’t see that connection at all.

The prices of all imports would rise if the dollar depreciates.

In the United States, securities markets are much more developed than they are in Europe.

The reserve currency role seems to add prestige to an area and some people in Europe have talked about the desirability of the euro becoming an international reserve currency.

Another question has been raised rather widely in Europe, in Japan as well as in the United States is what, to what extent will the euro become a reserve currency.

There is a European Central Bank, of course, established and it has the structure similar to the Federal Reserve system, not precisely the same but similar.

The dollar is currently the principal reserve currency in the world.

Love can be understood only “from the inside,” as a language can be understood only by someone who speaks it, as a world can be understood only by someone who lives in it.

Chances are the movements of the euro as against the dollar will be relatively moderate.

On private transactions, I’ll just go very quickly now, a major difference between the United States and Euroland is that in Europe banks are much more important in financial transactions than in the United States.

The dollar went up some eighty percent in real terms as I recall now or something like that – from ’80 to ’85.

Some countries that are close to Europe that already hold Deutschemarks, clearly would automatically hold euros, those are countries in Eastern Europe mainly, a few countries in Africa.

The major material advantage, financial advantage from having a reserve currency is that between 200 and 300 billion dollar bills, that may be twenty, fifty, hundred dollar bills as well as ones, exist in the world – a lot of them in Russia as you all know I’m sure.

The United States as usual has a sizable deficit in the current account of its balance of payments, trade account and other current accounts, current account items.

Back in those days, in the fifties and sixties, countries had balance of payment’s deficits or surpluses, those were reflected much more than today in movements of reserves among countries.

So if the euro, if Euroland is to become a reserve center, if the euro is to become a reserve currency, Euroland will have to have a deficit in its overall balance of payments.