DISCUSS THE ADVANTAGES AND DISADVANTAGES OF MONETARY UNION IN EUROP...

2) - TEST BANK CHAPTER 3 WHAT IS MONEY? TÀI CHÍNH TIỀN TỆ
TEST BANK CHAPTER 3 WHAT IS MONEY? TÀI CHÍNH TIỀN TỆ

2)

Discuss the advantages and disadvantages of monetary union in Europe.

Answer: Advantages include reduced transactions costs from using a common currency and

promotion of further integration.

Disadvantages include lack of labor mobility, and lack of fiscal transfers across regions,

depressing some regions while others grow.