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: Inefficient parts of the EU would be highlighted as the currency is the same everywhere in the EU thus inefficient parts of the EU where the costs of production would be highlighted as the currency is the same and comparisons could be easily made. If the country enters the currency too high then it would have to result to dirty floating to ensure that the value of it's currency to be able to be exchanged on international markets at the set price. This might lead to unwanted inflation and unemployment as the currency would have to be artificially high thus imports are cheap whilst exports are expensive thus balance of payment problem would arise. Governments can control inflation, unemployment, balance of payment and economic growth by resulting to large fluctuations in the fiscal policies and changes in the supply side. Large fluctuations in the fiscal policies would deter potential investments as firms would feel that that particular country is unstable at the moment. Any returns which they might receive might be lost as they might be taxed aw