andrewducker: (Default)
[personal profile] andrewducker

Date: 2018-09-12 03:56 pm (UTC)
danieldwilliam: (Default)
From: [personal profile] danieldwilliam
I think the specific requirement for a currency union to work are suffiently large and timely fiscal transfers and a single market. The EU / Eurozone largely has a single market. The fiscal transfers have been problematic because of the lack of the necessary political structures to decide on them and administer them and a lack of political and social cohesion. The EU is not a nation-state. That seems to be an important aspect of making a single currency work.

I think people in the USA don't much mind that their federal taxes are spent on e.g. maintaining military bases in poor states that they don't personally live in the way that Germans or Brits might mind having to spend "their" money on other countries troops based in Romania or Bulgaria.

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