Monetary Union
- Created by: Fi Alade
- Created on: 20-04-14 11:32
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- Monetary Union
- at least two countries share the same currency
- advantages
- reduced exchange rate costs
- price transparency - ease of comparison
- increased trade and economies of scale (cross border mergers)
- inward investment from TNCs
- macroeconomic management
- disadvantages
- transition costs - creation of union e.g. bank job losses and consumer adjustment
- loss of policy independence - different countries need different things
- loss of political sovereignty - Britian needs pound for Britishness
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