'Euros Accepted' signs pop up in New York City

This is a GREAT capitalist move...

They're giving tourists an extra service for free, hoping it will get them more customers...
 
When enough businesses are openly trading with foreign currencies, foreign currencies won't even need to be exchanged at the bank. People can choose to use them as a second currency and then
 
Dollars are taken and prefered most everywhere in the world. No big deal. Euro is strong. Let them spend it here.
 
Everytime I hear about pesos or euros being accepted in the U.S. I think about the constitution. Doesn't it ban the use of any currency other than the dollar?
 
Everyone flipped out when pesos were being accepted in Dallas at that one restaurant. Where's the outrage with the Euro?
 
FHII, right now, supposedly, merchants are starting to accept Euros from tourists.

Some have realized that it's better to hang on to them rather than exchange them at a bank.

If the dollar continues to fall, and Euros increase in circulation as tourists come for a cheap vacation, merchants may start using them here too (after all, other merchants are accepting them from all the tourists). Before long, there is a secondary economy trading in Euros. That's what Gresham's law is all about.
 
I've had very little problem using Dollars very recently in Canada, Argentina, Germany and Russia. I always thought it was pretty cool of the merchants to accept them and I like the one's that don'e a little less.
 
Sorry....I just don't see any macro economic implications to businesses agreeing to accept Euros.
 
When the European Union really becomes a true Union , then I think the Euro will become a real threat. Look at Australlia and New Zealand not too long ago. Their currency was traiding at 40 and 50 cents on our dollar and you don't see those countries cashing in. Like I said before, it is just a matter of time before the Euro weakens.
 
I'm not sure you have Gresham's Law right. Isn't the point of Gresham's Law is that "good" money is hoarded, and "bad" money is the only thing used? Hence bad money chases out the good.
 
I am more familiar with Grisham's Law -- mediocre "legal thrillers" shall make the author a certified assload of cash.

I got more of a shot of being involved with that law. You think there's any market about a bbq-loving Texas lawyer who's a crappy fisherman and who has a docket full of decent, but relatively uneventful, commercial litigation matters? Maybe if I had a funny sidekick?
 
Grisham's Law wouldn't apply anyway. No body is forcing the merchants to accept the euro. Or for that matter accepting it a predetermined value. Grisham's law would only work if the merchants were required to accept 1 euro in place of 1 dollar or vice versa.
 
Everyone flipped out when pesos were being accepted in Dallas at that one restaurant. Where's the outrage with the Euro?
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Because euros are being used by wealthy european tourists and pesos are being used by poor and probably illegal aliens.
 
Even with freely traded currencies, Gresham's law can apply. If, for example, there were two currencies, and one was undergoing runaway inflation. The result would be that people would try to get rid of the inflating currency as rapidly as possible, while hanging on to the stable currency. Thus, the bad money would drive good from circulation.

You could argue in this case that the euro is the "good" money, as it has been appreciating relative to the dollar. That would make all this the reverse of Gresham's law.
 
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