bank can only influence to a limited extent. while it is difficult and not always meaningful to make predictions about the overall international role of the euro, it seems safe to assert that it will be significant in a number of areas. first, there are what one might call the ‘ static ’ effects stemming from the changeover and the conversion of existing financial assets and liabilities into euro. that alone will already give the euro an internationally recognised role, since the euro area currencies, in general, and the deutsche mark, in particular, have played a significant role as anchor, reserve, investment and vehicle currencies in the past. second, and potentially even more important, there will be ‘ dynamic ’ effects stemming from new assets and liabilities acquired or issued in euro. here, the creation of a large and liquid, integrated capital market will be the most important element in fostering such a development. for shortterm instruments, there will be a broad and liquid european money market with a common overnight rate and very similar short - term interest rates for comparable instruments. at the longer end of the maturity spectrum, market integration will be jump - started by the rebis review 99 / 1998 denomination of outstanding government debt in euro on 1 january 1999. the elimination of the currency fragmentation in the european bond markets will also lead to the development of uniform market standards and the creation of a large and liquid market for portfolio investors. 2. how will the euro ’ s international role influence the ecb ’ s monetary policy? having an international currency has significant advantages for businesses and consumers. it may, however, sometimes complicate the conduct of monetary policy. in the escb ’ s monetary policy strategy, developments in monetary aggregates play a prominent role, and these developments will be analysed very carefully. if a significant part of the money stock were to circulate outside the euro area and if its development were to deviate from that circulating inside the euro area, this could be a source of instability in money demand. but this is only one of the challenges which the escb will be facing in analysing developments in monetary aggregates. other challenges are related to changes in money demand as a result of the introduction of the euro itself. together, these changes represent a structural break, and it is obviously difficult to predict how demand for money will evolve around such a break. the escb has taken these difficulties into account in its monetary policy strategy in that, firstly, it will announce only

to invest, unwilling to contribute to the society they live in. so, the question is how do we prevent this feeling from deepening such that it erodes the confidence and trust in the democracy and the government. what differentiates a " normal crime " from an " economic crime " is that the harmful consequences of a normal crime, which directly affects people's lives and properties, can be easily felt and observed. this creates fear and the obvious need to fight and prevent them. but common crimes do not involve huge monetary benefits. they are therefore less likely to be compromised in the law enforcement process. on the other hand, economic crimes generally do not have direct immediate impact on the publics'lives and properties because of their non - violent nature. hence, such crimes do not receive public attention and could easily be excused as non - priority cases. furthermore, the enormous financial benefits gained from economic crimes usually made it possible for the perpetrators to exploit their financial powers to intervene in the law enforcement process thus keeping this matter away from public scrutiny. people who are behind economic or financial crimes are usually quite smart and sophisticated. they tend to make use of their financial resources to build extensive connections in various organizations involved in the law enforcement process as well as the political system. thus, quite different from fighting common crimes, the authorities combating economic crimes also have to fight the interferences from influential powers, which often times are far more difficult than the investigation itself. it is clear that in order to effectively fight against economic and financial crimes in any society, a strong political will and full commitment of the government is needed. the government must also recognize that economic and financial crimes are vicious and destructive enemies of the country, which need to be unreservedly eradicated and prevented in every way possible. besides the obvious economic crimes such as drug trafficking and corruption, governments also need to fight against economic and financial crimes in every other shape and form. any type of such crimes can generate feelings of resentment about an unfair society, not just the drug trafficking cases. stock price manipulation, insider trading, or tax evasion, which even though do not directly harm people's lives, can still make people feel slighted. this is especially so if these white - collar perpetrators are quite influential or are close friends with politicians or the administrations. in all these cases, the role model set by the government is the most important element in winning people's confidence that the government is truly and sincerely committed to fighting against economic and