'1. Outline in detail how a single currency.r area such as that of the Euro comes to be. What are the advantages and disadvantages of a system like this? Should we expect it to persist? 2. Suppose a country chooses to restrict the ow of capital, imposing some level of capital controls. What information is revealed about the expectations of that country? What does that E us about the state of the rest ofthe world? What do the strength of the controls signal