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There will be large problems adjusting psychologically. There is no near Euro equivalent of France's ever popular 20 franc coin. Though coins are not a large percentage of the economy, they are what people think of when they think of money. That and 500 FRF notes, also with no near Euro equivalent.

I don't believe that these are significant issues. After all, the Brits decimalized their currency and the Swedes (overnight) switched their driving to the right side of the road (bet they didn't even give up their morning beers). There will will E1 and E2 coins (haven't yet located the Euro symbol in ASCII), and E50 and E100 notes. The French'll get used to it, without trauma.

Also, and of course, there are a few African currencies which are pegged to the FRF. What happens to these will also be intriguing to watch.

Nothing, I predict. They are already implicitly pegged to the Euro.

There are a lot of theoretical economic laws that we will see in actual practice between Jan and July 2002. One is that when there are two currencies in circulation side by side, the one that is "worth more" goes out of circulation almost instantly, because people hoard it.

Gresham's Law. Irrelevant, here. If the French hoard their old national currency, they will find it to be worth only its value as a collectible, since it will no longer be legal tender. Of those hoarded, only notes and coin in mint condition will have value as collectibles, and those values will depend on supply and demand. (I have an old Republic of China banknote with a face value of 500 gold units. I think it'll fetch about 50 cents. A mint Kennedy half-dollar isn't worth a whole lot more.)

Will the armored carriers be secure? Can France distribute enough Euros rapidly enough, without the drivers going on strike?
Distribution of coin to banks begins next month; notes in December. Circulation to the public will begin in December, and the national currency will remain legal tender until mid-February.

Europe still has a long way to go to integregate national economies, but the common market and currencies are major steps.

BTW, thanks for the further clarification on the definition of specie; I'd forgotten that the copper-colored penny is specie. But did you really have to look it up?
Schvitz
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