the European Parliament and left-of-centre parties - which are most in favour of a single currency. It was the first of many external blows to fall on plans for monetary union. Its central feature was the Exchange Rate Mechanism (ERM) whereby a loose grouping of European currencies and economies moved to an ever more rigid system of currency management with fewer and fewer realignments. The most explosive political point, inherent in any discussion of EMU, centred on the question of national sovereignty.
The European Commission drew the lesson that the reason for the ERM's disintegration was not too much monetary union but too little. Markets work more efficiently, the quality of savings and investment decisions improves, tax distortions are removed, and there is an end to the arbitrary and unfair redistribution of income which takes place through inflation. Economic growth in Europe has been slowing down since the 1960s thanks to the more and more damaging economic and social system which started dominating Europe at that time. However, some attributed it to different causes and drew different conclusions.
European History or Global Studies
Mrs. Mallards Single Hour
A minimum wage has the same effect. For instance an increase in commodity prices, such as oil, would affect producer countries differently to those reliant history of Civil Rights Movement on imports. Interest rate and other monetary decisions would, of course, be taken for the currency area as a whole. How tough the ECB will be is difficult to tell but it is fair to assume that it will want to adopt as much as possible of the Bundesbank's reputation for stability and prudence. The Commission described regional mobility of labour as 'neither feasible, at least not across language barriers, nor perhaps desirable.'7 That leaves reductions in real wages and prices. These powers go to the root of what a parliament is for and their loss must call into question whether such a country is in any real sense self-governing.
The committed European federalist is probably impervious to economic argument. We had no other choice but the communist experience was still too fresh. From the start of stage three they are binding and may be backed up by penalties and fines.9 The reason for strict rules governing national deficits is because over-borrowing by one country affects the whole single currency area.
Biography of Colonel John Singleton Mosby, Japanese and European Feudalism, European Religious Reformation, European Motivation for American Exploration,