8. Imagine that the EMS became a monetary union with a single currency but that it created...

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8. Imagine that the EMS became a monetary union with a single currency but that it created no European Central Bank to manage this currency. Instead, imagine that the task was left to the various national central banks, each of which was allowed to issue as much of the European currency as it liked and to conduct open-market operations.
What problems can you foresee arising from such a scheme?

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International Economics Theory And Policy

ISBN: 9780321116399

6th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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