Abstract
The fall of communism in Eastern Europe in the beginning of the 90-ies of the 20th century marked the beginning of a historical process of triumph of market economy in a wide geographical area and a large population, which had to have an influence on global developments. This age is characterized not only by a comprehensive ruling of capitalist market economy, but also by a series of important structural changes in economies of various countries, national and international mechanisms of market functioning, and relevant institutions thereto. Distinct authors have various opinions on characteristics and positive and negative outcomes of a globalized economy era. Some consider the globalization of world economy as a quantitative and qualitative expansion of market economy throughout the world, similar to the situation before the World War I. Other more serious authors consider the globalization of world economy as a new qualitative era, with important consequences on many areas.
Highlights
To understand better the today’s severity of numerous contradictions and competition in specific markets of goods, capital and currency, one must take into account firstly the changes made in development and roles of countries and most important groupings of world’s economy
Despite the fact that 12 of the EU Member States use a joint currency (Euro), one must again consider that the effect of such growth, in comparison to the USA, loses ground due to the fact that the EU does not represent a single state unity, since each Member State has its own budget, its own tax system and many other elements which are not consolidated with the Central Bank or a single Ministry of Finance, or a single Government
Based on the assessment of factors as above, one may claim that the coarsening of the currency markets is partially a result of the low-rated dollar policy, pursued by the US to cope with the difficulties of the crisis, to increase production for export and lowering the unemployment rates, which continue to be rather high in the US, the economy has generally been recovering
Summary
Note: Amounts of four EU countries are a repetition (included in category 16107). The data in the table above show clearly that in the world’s economy, there are leading states such as the USA producing 23,6% of the GDP of the world, and the EU producing 26% of the GDP of the world. Based on the assessment of factors as above, one may claim that the coarsening of the currency markets is partially a result of the low-rated dollar policy, pursued by the US to cope with the difficulties of the crisis, to increase production for export and lowering the unemployment rates, which continue to be rather high in the US, the economy has generally been recovering. In this example, it is easy to understand that the largest burden of such currency policies is taken by the EU countries and other developing countries. To have a clearer understanding why the Euro is so favourable for Germany, which is not really concerned with the large boost of exchange rates, one must refer to the records on the structure of German exports in the region, presented in the following table (data of 2009): German exporting countries: Export amount in euro billion
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