During the first few years after the advent of the euro (1999-2002 say), monetary and financial developments will be dominated by three factors: the huge difference between the US and Europe as regards the balance between saving and investment, the reversal of the difference in cyclical positions in the medium term between the US and the euro zone; and the moves in the structure of European financial markets towards the US model, with notably a considerably increased share of private debt. Although this study was prepared in late spring, it is still valid today because of its long-term perspective.
