Is a unified monetary policy the right way ahead? Free Essay, Term Paper and Book Report
The European Union is the largest single currency region since the Roman Empire. Over a period of 3 years, starting from Jan 1999, all financial transactions in the Euro area were systematically converted into a single currency regime. It began with financial institutions converting all their transactions and ended with all currency notes and coins being converted into the Euro. The earliest Euro-land that was envisaged in 1999 contained close to 300 million people and accounted for about 15pc of the worlds GDP then. Although, the EMU (European Economic and Monetary Union), got off to a shaky start with the failure of the Exchange rate Mechanism (ERM) of the European Monetary system, the supporters of the EMU argued that the advantages of a common currency would benefit both businesses and consumers alike. However, it is key for a monetary policy to succeed that the region that it is adopted for be uniform in characteristics.
Ever since its inception there have been doubts over the possibility of running a unified monetary policy in the wake of a combined European union. The sus......
Word Count: 2216
Page Count: 8.8 (250 words a page / double spaced)
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