Goal of a single shared currency, International Economics

Q. Why did the EU countries move away from the EMS toward the goal of a single shared currency?

Answer:

1. To produce a superior degree of European market integration by removing the threat of EMS currency realignments.

2. To decrease German dominance of the EMS monetary policy.

3. Given the shift to complete freedom of capital movements within the EU fixed however adjustable currency parities may possibly lead to ferociously speculative attacks as in 1992 - 1993.

4. To guarantee the political constancy of Europe.

Posted Date: 6/29/2013 3:00:26 AM | Location : United States







Related Discussions:- Goal of a single shared currency, Assignment Help, Ask Question on Goal of a single shared currency, Get Answer, Expert's Help, Goal of a single shared currency Discussions

Write discussion on Goal of a single shared currency
Your posts are moderated
Related Questions
Q. What are the factors that determine the amount of money an individual desires to hold? Answer: Three major factors that are first one the expected return the asset offers co

ABOUT THIS THEORY

the year of alternative / new trade theoriess

Q. Neoclassical and Classical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and therefore is an op

Q. Discusses the effects of a rise in the interest rate paid by euro deposits on the exchanger rate.   Answer: For a known U.S. interest rate and a given expectation wi

Q. Use the DD - AA model to examine and compare the response of an economy under fixed and floating exchange-rate regimes to a temporary fall in foreign demand for its exports.

Q. "The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners.

Q. What are the predictions for the long run of the Monetary Approach? Answer: Money supplies- Known the equations E $/E = P US /P E P US = M S US /L(R $

Identify and explain the three basic economic question that the group of survivors will have to answer everyday

Q. Explain why the EMS countries decided to fix their exchange rates against the German DM? Answer: In this manner the other EMS countries in effect imported the credi