3 ms·

> His theoretical work allowed the Euro to be developed I rest my case.

• throw0101a 6y ago
  If only people had actually listened to what Mundell actually said / wrote: > The four often cited criteria for a successful currency union are:[6] > * Labor mobility across the region. […] > * Openness with capital mobility and price and wage flexibility across the region. […] > * A risk sharing system such as an automatic fiscal transfer mechanism to redistribute money to areas/sectors which have been adversely affected by the first two characteristics. […] > * Participant countries have similar business cycles. When one country experiences a boom or recession, other countries in the union are likely to follow. This allows the shared central bank to promote growth in downturns and to contain inflation in booms. […] * https://en.wikipedia.org/wiki/Optimum_currency_area https://en.wikipedia.org/wiki/Optimum_currency_area * https://www.jstor.org/stable/1812792?seq=1 https://www.jstor.org/stable/1812792?seq=1 In 2012 Krugman laid out three things that needed to be done to make the Euro work better: * https://www.journals.uchicago.edu/doi/full/10.1086/669188#_i9 https://www.journals.uchicago.edu/doi/full/10.1086/669188#_i...