Ours is a world of free-flowing capital.companies, mutual funds and individuals increasingly in-vest across national borders. This is one of globaliza- tion's most erratic—and brutal—upheavals. The latest reminder is the steep decline of the euro (Europe's new money). It's lost about 25 percent of its value against the dollar since being introduced in January 1999. The main reason is an adverse flow of global investment funds. As money shifts from Europe to the United States, euros are sold for dollars. This depresses the euro. Some Americans may take quiet satisfaction from the euro's slide. After all, this is a case of private Europeans (corporations, institutional and personal investors) voting with their money in favor of the United States. In 1999 Europeans boughtabout$200 billion worth of U.S. stocks and bonds.
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