In the age of the Internet, this effort is doomed to failure. In response to questions from Silicon Valley business people in the audience, the two economists agreed that the economic impact on the United States will be minimal in the short term. Portillo, however, contended it will be quickly negative for U.S. foreign policy. McKinnon said he expects no impact on U.S. interest rates, while Boskin said they could rise slightly as more people who have held U.S. Treasury notes will be willing to hold Euro-denominated ones. It's got a natural monopoly that can't be displaced easily.
Trade is typically dollar-invoiced.
The Euro will be a very important regional currency. Neither Boskin nor McKinnon predicted the Euro will take off in value relative to the dollar. Boskin added his impression from meetings in Europe that the French expect new monetary policy to be made by French bureaucrats transplanted to Brussels, while Germans expect Germany's fiscal policy setters will call the shots. The Europeans, he said, haven't agreed on any foreign policy issue in recent history. There are elements of anti-Americanism, people who resent our dependency on the United States for defense. . . .