How many countries use the euro

The larger businesses gained even more of a competitive advantage. In a sense, the euro allowed them to export the inflation that typically comes with the expansionary phase of the business cycle. They enjoyed the benefits of high demand and production without paying the higher price.

Countries can't print their own currency : Adopting the euro means countries also lose the ability to print their currency. That ability allows them to control inflation by raising interest rates or limiting the money supply. Countries give up fiscal autonomy : Some countries are reluctant to give up some authority over their monetary and fiscal policies when they join the eurozone. Many simply haven't been able to cut spending enough to meet this criterion.

The European Central Bank provides the current exchange rate for the euro. The first phase of the euro launch occurred in when it was introduced as the currency for electronic payments. These included credit and debit cards, loans, and other uses for accounting purposes.

During this initial phase, old currencies were used for cash only. Eleven nations adopted it right away. The second phase was launched in when euro coins and banknotes appeared in physical form. Each country has its own distinct form of the euro coin. Investors fled from dollar-denominated investments during the near-bankruptcy of investment bank Bear Stearns.

As it became apparent the U. In , Greece announced it might default on its debt. The EU reassured investors that it would guarantee the debt of all eurozone members. At the same time, it asked indebted countries to install austerity measures to ratchet down their spending. The European economy has rebounded since then, but some say the eurozone crisis still threatens the future of the euro and the EU itself. European Central Bank. European Union.

Bank of International Settlements. European Commission. Max Planck Sciences Po Center. Accessed Feb. More have since signed on, and additional countries plan to. The euro and the dollar are key to global markets. Featured Video. View Article Sources. Cite this Article Format. Rosenberg, Matt. Countries Using the Euro as Their Currency. Countries in the European Economic Area. How Much U. Debt Does China Really Own?

Understanding The Bretton Woods System. Visa After You've Applied? Types of Federalism: Definition and Examples. The History of the European Space Agency. Your Privacy Rights. To change or withdraw your consent choices for ThoughtCo. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.

We and our partners process data to: Actively scan device characteristics for identification. Monetary Policy. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile.

Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Drafting Monetary Policies. Handling Country-Specific Issues. Lender of Last Resort. Inflation-Controlling Measures. Currency Devaluation. The euro is the official currency of 19 member states of the European Union.

This group of states is known as the eurozone. Approximately million people live within this region. The European member states that use the euro include:. As of , it is estimated that about million Europeans use this form of currency.

The euro has the highest value of notes and coins in circulation out of all of the world's currencies.