Title: Euro: the common currency explained | CBC News
Headings: Euro: the common currency explained
Euro: the common currency explained
How Europe's currency came to be and how it's used today
Eurozone countries
How to join
Maastricht criteria
Eurozone enforcers
Advantages and disadvantages of a common currency
Common currency vs. common market

Content: Advantages and disadvantages of a common currency
Advantages
Disadvantages
Ensures low, stable inflation and low interest rates. Vast differences in economic performance between countries make it hard to implement one-size fits all fiscal policies. For example, the inflation level set by the European Central Bank may not work well for all eurozone counties. This also means that weaker economies can pull down stronger economies, as is the case in the current debt crisis, with heavily indebted countries like Greece negatively impacting the stronger economies of Germany and France. Eliminates currency exchange costs and fluctuations. Cost of introducing the currency is significant. Facilitates easier travel and trade between states. Deficit limits restrict what fiscal tools governments can use to combat recession, unemployment and other economic problems that may be specific to their situation. Increases price transparency — consumers can more easily compare prices across borders. Has deflationary effects.