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Unformatted text preview: in euros, as will the financial markets. At the retail level, national currencies will continue to circulate and remain sole legal tender until July 2002. The euro will be introduced for retail transactions in January 2002. Thereafter, national currencies will be redeemed for euros for periods set by national legislation. European governments are giving up the ability to have an independent monetary policy. This would not be a problem if Europe is an optimal currency area (share the same currency without any adverse consequences). optimal currency area: homogeneity flexibility of wages and prices mobility fiscal transfers...
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- Fall '09
- Personal Finance