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Economics A Level (DONEEEEEEE)

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Question:

What are the Reasons against Entry to the EMU?

Author: eric_galvao



Answer:

-Price Stability is a Major Aim of the ECB. The Inflation Targets are Less Flexible than the UK. Slower Growth thus may be having to be the Result -Problems uncovered after the Global Financial Crisis. The Euro is a bit Broken -A large Amount of Structural Unemployment within the Eurozone, alongside a Widening Divergence in Trade Balances between the Eurozone. This suggests Problems in Competitiveness between Member States, as well as overall Systemic Problems within the Eurozone


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