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Q. Discuss the problems that the EMU will face in the coming years.
Answer: Europe isn't an optimum currency area so asymmetric economic developments within different countries of the euro zone that call for different interest rates can't be implemented. The political part of the confederacy is much weaker and may limit the political legitimacy of the economic unification. On the one hand labour markets stay remains highly unionized and subject to high government unemployment taxes and other regulations impeding labour mobility. On the other side capital has high inducement to migrate to the EMU countries with the lowest wages. Constraints on national monetary policy are likely to be painful due to the nonexistence of substantial fiscal federalism fiscal transfer of resources from the rich to the less rich countries within the European Union. The EU is considering a major expansion of its membership into Eastern Europe and the Mediterranean. This will cause several coordination costs and as well the issue of representation of small and big countries.
critically evaluate Adam Smith''s theory of absolute advantage,outlining the assumptions necessary for the theory to hold in its purest form.what are the criticisms of this theory
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een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to
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Q. How could the U.S. government justify its decision to offer a subsidy to a profitable and successful business? Answer: It could indicate that this $10 million pump-priming
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