1. This contribution was written in my capacity as State Secretary at the German Federal Ministry of Finance (2008–2011), i.e., before I became a Member of the Executive Board of the European Central Bank (January 2012). I would like to thank Johannes Wolff, Christian Dalhaus, and Dr. Rouven Klein from the staff of the Federal Ministry of Finance for assisting me in the research for this article and their valuable contributions in discussing the subject matter.
2. This section is an edited and abbreviated version of information provided by the Bundesbank (Bundesbank, 2008).
3. For a more detailed assessment of the euro’s ...