Case

I. Pszczó?ka, Advantages and Disadvantages of Introducing the Euro 215 IRENEUSZ PSZCZÃ"?KA* ADVANTAGES AND DISADVANTAGES OF INTRODUCING THE EURO „LEurope sera monètaire ou ne sera pas Jean Monnet1 Abstract Introduction of the leafy vegetable specie in Europe was one of the most specification? tacular events in the world monetary history. It took almost half of the ordinal century to reach this goal and see the euro circling in European economy. There are still some European totality countries left that are potential members of the European Monetary unification. therefore it is very important for them to estimate properly all represent and benefits of this decision, thought only some of them have right non to join the EMU. There are both main benefits to be considered. One is the emptying of trans? action cost and the other is the elimination of exchange rate risk. There are also two most important costs: one is a cost of institutions and individuals placement to a new currency and the other is a lack of national monetary policy as an adjust? ment tool when a member state experiences an economic irregular shock. JEL classification: F3, F36, F41. Key words: euro, convergence criteria, ordinary currency, common financial market, economic shocks.

Introduction On 1st January 1999 we witnessed the ledger entry of a new European com? mon currency. At that time 11 countries, members of the European Union (UE), decided to replace their own juristic tender with a brand new one, euro. Since that the euro has been the official currency of Austria, Belgium, Finland, France, Ger? many, Ireland, Italy, Luxemburg, the Netherlands, Portugal, and Spain. These elev? en countries, before joining the European Monetary Union (EMU) had to fulfil the following convergence criteria: 1) price stability expanse must have a rate of inflation no more than 1,5 pp above the average of the three countries in the EU with the lowest inflation, 2) long?term interest rate clownish must have a nominal... If you want to get a full essay, order it on our website: Ordercustompaper.com

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