Title: Benefits Of Single European Currency - Free Coursework from Essay.uk.com
Headings: Benefits of single european currency
Benefits of single european currency
Examine the potential benefits to European manufactures and consumers of single European currency

Content: Also it would be easier for them to hold only one currency and travel to any part of the EU and be able to purchase goods and services with it. Joining the Euro will make pricing by companies much more transparent and give consumers a much better deal. For what might a single European currency might disadvantageous to a member country. cobg bgr sebgbgw orbg bgk inbg fobg bg. It would be impossible if not extremely difficult for the European Central bank to be able to tailor an interest rate, which would be able to effect the economies for all countries in a positive way. Even for parts of the UK the single interest rates has caused problems as part of the UK such as the north east is declining whilst the south west is in a boom. Therefore it would be even more difficult for the central bank of EU to be able to decide on an interest rate which would benefit all 11 countries. Although the exchange rate is fixed (the single exchange currency) the interest rates by definition doesn't have to be fixed. In reality it is because if the interest rates was higher in B than in A. People would borrow money from A causing a balance of surplus in A. As they are exporting a surplus in the Capital account whilst could try B would be facing a lower demand for loans. Thus a deficit in the capital account causing friction between countries thus interest rates for the whole of the EU has to be the same.