oussama94
05-28-2017, 23:18
While ease of traveling is perhaps the most salient issue to EMU citizens,
the euro also brings about numerous other benefits:
It eliminates exchange rate fluctuations, thereby providing a more stable
environment to trade within the euro area.
The purging of all exchange rate risk within the zone allows businesses
to plan investment decisions with greater certainty.
Transaction costs diminish (mainly those relating to foreign exchange
operations, hedging operations, cross-border payments, and the management
of several currency accounts).
Prices become more transparent as consumers and businesses can
compare prices across countries more easily. This, in turn, increases
competition.
The huge single currency market becomes more attractive for foreign
investors.
The economy’s magnitude and stability allow the ECB to control inflation
with lower interest rates thanks to increased credibility
the euro also brings about numerous other benefits:
It eliminates exchange rate fluctuations, thereby providing a more stable
environment to trade within the euro area.
The purging of all exchange rate risk within the zone allows businesses
to plan investment decisions with greater certainty.
Transaction costs diminish (mainly those relating to foreign exchange
operations, hedging operations, cross-border payments, and the management
of several currency accounts).
Prices become more transparent as consumers and businesses can
compare prices across countries more easily. This, in turn, increases
competition.
The huge single currency market becomes more attractive for foreign
investors.
The economy’s magnitude and stability allow the ECB to control inflation
with lower interest rates thanks to increased credibility