Economics, Econometrics and Finance
8 years ago

Common Currency Union May Limit Regional Autonomy in Economic Policies

ZEI studies in European economics and law
Empirical Evidence on Common Money and Uncommon Regions in the United States
Michael Horvath

Paper Summary

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The article discusses how the adoption of a common currency in Europe may affect regions differently. Economists and politicians are concerned about whether regions will lose the ability to respond to economic issues with their own policies. The idea is that regions with similar economic problems won't be negatively impacted by a common currency.