Chapter 8 Essay questions

Political economy of deconstructing the Eurozone
  1. Explain why countries that find out that they are not part of the optimal currency area may still decide not to exit the monetary union.
  2. Explain why a country that leaves the monetary union may be better off doing so.
  3. Explain why a country that leaves the monetary union may be worse of doing so.
  4. Why is there so much uncertainty about the costs and benefits of exiting the monetary union.
  5. Will those who stay in the Eurozone be better off when one or more members exit the union?
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