The ECB's success in achieving low and stable inflation during the Eurozone's first decade disguised the build-up of dangerous imbalances among the members.'

Provide an explanation and assessment of the claims in this statement.

Use the models presented in Chapters 9-12 to

(a) Discuss reasons why countries that wish to achieve low inflation may join a common currency area. Discuss how the ECB achieved its inflation objective.

(b) Explain what could be meant by 'dangerous imbalances' among the members.

(c) Use the \(A D-B T-E R U\) model to explain how imbalances could occur consistent with the ECB achieving its inflation target. Relate this to the performance of specific countries.