Why did the EU countries move away from the EMS toward the goal of a single shared currency?

What will be an ideal response?

(1 ) To produce a greater degree of European market integration by removing the threat of EMS currency realignments.
(2 ) Reduce German dominance of the EMS monetary policy.
(3 ) Given the move to complete freedom of capital movements within the EU, fixed but adjustable currency parities, may lead to ferociously speculative attacks, as in 1992-1993.
(4 ) To guarantee the political stability of Europe.

Economics

You might also like to view...

Most economists agree that a majority of recessions are caused by supply shocks

Indicate whether the statement is true or false

Economics

In the Activists' Paradise, to increase real GDP without affecting the interest rate, it is necessary to change

A) only fiscal policy and shift the IS curve. B) only monetary policy and shift the LM curve. C) fiscal and monetary policies and shift both IS and LM. D) more policy instruments than policymakers are actually able to manipulate.

Economics