In what has become a traditional approach, the economics of monetary union in Europe is now commonly analyzed in terms of costs and benefits. This approach has the advantage of using a format that is generally understood by economists and others alike to emphasize the general fact that everything has a cost, and proper consideration of a proposed project needs to assess the costs as well as the benefits. In addition, such an approach holds the promise that a rational decision can be forthcoming if the costs and benefits are correctly identified and measured.
KeywordsExchange Rate Monetary Policy Central Bank Real Exchange Rate Monetary Union
Unable to display preview. Download preview PDF.