On January 1, 1999, a new era of European economic and monetary union (EMU) began when 11 of the 15 member countries of the European Union (EU) replaced their national currencies with a single currency, the euro. Will the introduction of the euro have real economic effects, or will it be primarily an accounting phenomenon? As far as the countries of Latin America and the Caribbean are concerned,
... [Show full abstract] the euro will probably affect their trade with Europe only slightly, but it will have a somewhat greater impact on their financial markets and debt-management policies over the short and medium terms.