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Optimum currency area ((Transfer (Countries that agree to compensate each…
Optimum currency area
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Solidarity
When the common monetary policy gives rise to conflicts of national interests, the countries that form a currency area need to accept the costs in the name of a common destiny
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Product diversification
economies offer a range of different products or services, as opposed to specializing in just one.
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political leader see EMU as a way of furthering the political agenda of a federalist European political union. Broader political disagreements will induce some countries whether they made a mistake in joining.
EU labor mobility was low and it was expected to increase it by introduction of a single currency. Workers were advocating it to boost the economy.
In the very beginning there were some troubles, but for the last decades trade among EMU member countries has risen fast and declined less than among non-member countries.
It has been suggested that a European tax could be established that could support a European unemployment benefit scheme
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