With regard to the European Monetary Union, the view, often put forward but unproven because it cannot be demonstrated, that a common currency would set in motion automatic forces for economic convergence among the participating countries. Because fiscal policy and most other important policy areas remain in the national decision-making power of the participating countries, convergence would be possible only if the measures in these areas were precisely coordinated. Indeed, in some countries, which were already weak when they joined EMU, labor costs rose disproportionately, damaging their competitiveness and plunging them, and then EMU, into a debt crisis. – See ClubMed, disfunctionality, currency area-related, eurobonds, common, euro states, EMU explosive, fiscal pact, money multiplication, intra-currency union, Helleno mania, current account deficit, wage policy, coordinated, structural reforms, imbalances, intra-EMU, growth promotion, growth differentials, intra-currency area, optimal, economic policy, European.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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