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monetary integration in Europe - Coggle Diagram
monetary integration in Europe
common currency
this idea came from European Commission in the 1980s
history
Bretten Wood system
1960s
replaced by a diff system
Smithosian agreement
exchange rate fluctuations are allowed but should we kept within a certain space
later, when France and Germany both reponded differently to a crisis (spend less/spend more), the space between the currencies rose
Eropean monetary system
established in the 70s, lasted until early 1990s
the single market
completed by 92
free movement of people, goods, services, capital
abolishing different standards
Maastricht Treaty
proportion to create Euro
Maastricht criteria
euro
its weak spot
exposed during the eurozone crisis
Stbaility and Growth Pact
to make sure states would have balanced budget
no mechanism to make sure states complied with the pact
European Central bank