Eurodollars are time deposits denominated in U.S. dollars at
banks outside the United States, and thus are not under the
jurisdiction of the Federal Reserve. Consequently, such deposits
are subject to much less regulation than similar deposits within
the U.S., allowing for higher margins. The term was originally
coined for U.S. dollars in European banks, but it expanded over
the years to its present definition—a U.S. dollar-denominated
deposit in Tokyo or Beijing would be likewise deemed a
Eurodollar deposit. There is no connection with the euro
currency or the eurozone. More generally, the euro- prefix can
be used to indicate any currency held in a country where it is
not the official currency: for example, euroyen or even
euroeuro. Gradually, after the Second World War, the quantity of
U.S. dollars outside the United States increased enormously, as
a result of both the Marshall Plan and imports into the U.S.,
which had become the largest consumer market after World War II.
As a result, enormous sums of U.S.