Macroeconomic effects of euro implementation

Considers the macroeconomic effects of European monetary union and the launch of the euro, suggesting that it offers major advantages to European traders, investors and consumers by reducing transaction costs, currency risks and information costs. Recognizes some problems, e.g. transition costs, increased competition in financial services; and the uncertainty surrounding the powers of the European Central Bank (ECB) and effects on national economic policies. Discusses the pros and cons of remaining outside the euro zone; and the likelihood that governments will push the ECB into accelerating monetary growth in order to reduce unemployment.