Contents 1.Introduction 2.Theory of Monetary Integration 3.Europe as an Optimal Currency Area 3.1 Factor Mobility 3.2 Volume of Trade 3.3 Degree of Synchronisation of Business Cycles 3.4 Fiscal Transfers 4.Positive Effects of the euro 4.1 Goods and Financial Markets 4.1.1 Business Confidence 4.1.2 Reduced Costs and Downward Pressure on Prices 4.1.3 Stability 4.1.4 Integration of Financial Markets 4.2 Macroeconomic Effects 4.2.1 Price Stability 4.2.2 Low Interest Rates 4.2.3 Resistance to external Shocks 4.3 Global Effects 4.4 Societal Effects 4.4.1 Convenience 4.4.2 Wide Acceptance of Currency 5.Negative Effects of the euro 5.1 No Control …showed first 75 words of 3393 total…

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