By Desmond Lachman
Among the more probable long-run casualties of today’s global and financial market crisis will be any further expansion of European monetary union. It is also more than likely that today’s global financial market crisis will mark the end of any serious challenge by the euro to the US dollar as an alternate international reserve currency.
A deep and long global economic recession will put severe strain on the current 15-country euro area. It will also expose the acute external vulnerabilities of those east European countries which aspire to full euro area membership.