However the European monetary union isn't a union like you see in the US or other huge countries. In the US we have probably 100-200 billion a year in transfer payments. Automatic stabilizers like social security and unemployment insurance, etc. And then we have a true central banking system Bank in Florida goes under, it's not Florida's problem it's the Federal Reserves problem.
If a state isn't able to use currency exchange rates to control in flow and out flow of money then you need these types of things to keep the system stable. Europe doesn't.
So you are indeed right about not being able to pick and choose. You can't take control of a counties currency away from them without guaranteeing that the central bank and government will have their back economically.
If a state isn't able to use currency exchange rates to control in flow and out flow of money then you need these types of things to keep the system stable. Europe doesn't.
So you are indeed right about not being able to pick and choose. You can't take control of a counties currency away from them without guaranteeing that the central bank and government will have their back economically.