Dollar Vs. Euro

1. Introduction
Since the appearance of the EURO (?) in the international trading system, the American dollar ($) has lost its domination and role in the financial world. Consequently, there is not only a great disparity in the exchange rate between the two currencies in favor of the EURO, but a growing problem in the US economy as well. Table 1, which can be found in Appendix B, shows the course and relationship of the exchange rates of the two currencies from 1999 until now.
The scope of this paper is to approach as best as possible the various reasons for this disparity and try to predict the future of the two currencies based on accurate and up-to-date information. At this point, the authors would like to make clear that they do not intend to criticize or praise any political or financial behaviors, but to present the facts objectively.

1.1.    Short History of $
The appearance of the first American dollar goes back to August of 1786 when the Congress approved it as the official American unit of account for the United States. Until 1874 the value of the United States dollar was tied to and backed up by silver, gold, or both. In Table 2, which can be found in Appendix B, we can see the relation of the gold and dollar from 1954 up to 2003.
Another term closely associated with the dollar is the so called petrodollar. This is a term that was given by Ibrahim Oweiss, a professor of economics at Georgetown University, in 1973 to describe the dominance of the American currency over the international oil market. The same conclusion is coming out from Chart 1, where we can see that in 1973 the gold value of the American dollar fell almost nine times, because it was no more connected with the gold standards.

1.2.    Shor ...
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