EURO – ADVANTAGES AND DISADVANTAGES

Abstract

The adoption of a single currency was considered one of the most important successes of the effort to unify the countries of the European Union. Obviously, a common currency has indisputable advantages, the most important being that of stimulating trade in countries that have joined the Eurozone. Meanwhile, the euro has several disadvantages, the most important being that the excessive centralization of monetary policy in the European Union. Moreover, the introduction of a single currency generated some disadvantages, which to some extent can be considered drawbacks in terms of efficiency of resource allocation in the European Union countries.

Keywords

• common currency; monetary policy; specialization; trade