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Madeira Escudo

What is 'Madeira Escudo'

The former currency of Madeira, an island off the coast of Portugal. The Madeira escudo was used as Madeira's currency until it adopted the euro along with Portugal on January 1, 2002. Madeira belongs to Portugal, but has been an autonomous region since 1976, meaning that it has its own government and legislature and can make its own decisions on regional matters. It has Portugal's second highest GDP after Lisbon and is a popular EU tourist destination, perhaps best known for its fortified wine production. The escudo was also the former official currency of Portugal until the adoption of the euro.

Explaining 'Madeira Escudo'

Madeira along with Portgual adopted the euro to help facilitate trade among EU countries, eliminating the uncertainties imposed by fluctuating exchange rates and the need to exchange currencies before completing a transaction.





The euro also prevents individual EU member countries from inflating their currencies to eliminate government debt (though the EU central bank still has that power). Critics have pointed out that widespread implementation of the euro decreases currency competition, giving people fewer options for holding their money in a different currency when faced with wealth-eroding monetary policies such as inflation. Others have pointed out that widespread use of the euro could be followed by tax harmonization policies that would decrease tax competition among member states and stifle economic growth.


Further Reading


Stock market development, financial development and economic growth in Portugal
ubibliorum.ubi.pt [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

Innovation study:" Economic contribution of the whale-watching industry for the Madeira Archipelago"Innovation study:" Economic contribution of the whale-watching industry for the Madeira Archipelago"
digituma.uma.pt [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

Madeira embroidery: A failed collective brand (1935–59)Madeira embroidery: A failed collective brand (1935–59)
www.tandfonline.com [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

The Colonial Budgets, a Sophisticated Portuguese Late Imperialism Propaganda Device.The Colonial Budgets, a Sophisticated Portuguese Late Imperialism Propaganda Device.
search.ebscohost.com [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

Establishing Suitable Strategies to Improve Sustainable Development in the Portuguese Ultraperipheral Regions of Madeira and the Azores. CEPS Working …Establishing Suitable Strategies to Improve Sustainable Development in the Portuguese Ultraperipheral Regions of Madeira and the Azores. CEPS Working …
aei.pitt.edu [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

Social action in PortugalSocial action in Portugal
www.tandfonline.com [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

Introduction: Why to Study “The Portuguese Introduction: Why to Study “The Portuguese
link.springer.com [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

Portugal restrictive, but Madeira comes to the rescuePortugal restrictive, but Madeira comes to the rescue
heinonline.org [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …

The Results of the 1971 Reform of The Results of the 1971 Reform of
link.springer.com [PDF]
Financial system and economic growth are closely related, since a lot of decades this theme had been the subject of many research. As we know financial system might be divided into two components: the stock market and the banking system. This study tests the relationship …



Q&A About Madeira Escudo


Can you name some disadvantages of adopting a single European Currency like Euro ?

Critics point out that widespread implementation of Euro decreases competition for holding money in different currencies when faced with wealth eroding monetary policies such as inflation . Others have pointed out that widespread use of Euro could be followed by tax harmonization policies which would decrease tax competition among member states stifling economic growth . Another disadvantage is that it may lead to increased price volatility if interest rate changes are not uniform across all participating economies .

What is the former currency of Madeira?

The former currency of Madeira was the Madeira escudo.

What is the Portuguese escudo?

The Portuguese escudo was the currency of Portugal prior to the introduction of the euro on January 1, 1999 and its removal from circulation on February 28, 2002.

What were amounts written as?

Amounts in escudos were written as xxx/yyy escudos with yyy being a number between 10 and 1000 (e.g., 25/100 means 25 escudos). Because of the conversion rate of 1 real = 1000 escudos, three decimal places were initially used (1 = 1000). Escudo gold coinage was initially introduced in 1722 with denominations including ½, ¼, 8¾ and 4½ cruzados; these corresponded to ⅛, ¼, ½ and ¾ joes respectively. In 1846, smaller denominations such as 20 and 40 cents were added. However only banknotes circulated after 1878 although some coins continued to be minted until 1922 (5 centavos) or 1927 (50 centavos). In 1914–1916 bronze 0-centavo coins were issued specifically for use in Macau due to a shortage of small change there at that time; however they did not circulate well so they are extremely rare today - one example sold for over US$1000 in 2012!

How was it subdivided?

It was subdivided into 100 centavos. The word escudo derives from the Latin scutum shield.

Why did these eleven countries adopt the euro?

These eleven countries adopted the euro to help facilitate trade among EU countries, eliminating uncertainties imposed by fluctuating exchange rates and need to exchange currencies before completing a transaction.

What are some advantages of adopting a single European currency such as the Euro?

Adopting a single European currency such as Euro eliminates uncertainties imposed by fluctuating exchange rates and need to exchange currencies before completing a transaction. It also helps facilitate trade among EU members states by eliminating any barriers that could be caused due to different currencies being used in different regions within an economy or country.

Is there any other disadvantage ?

There are other disadvantages too but they are not mentioned here because they were not part of this paragraph's content .

Who uses the euro in Portugal?

Portugal and its autonomous region, Madeira, both use the euro.

How many EU member countries have adopted the euro as their official currency?

Eleven countries have adopted the euro as their official currency.

What does "autonomous region" mean?

An autonomous region has its own government and legislature and can make its own decisions on regional matters.

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