Unformatted text preview: -People worry today if the Euro is strong enough. There isn’t a true central bank to govern over the countries and guarantee trust. They do have a central bank but there is not a strong enough foundation.-Not an optimal currency area. You would want similar borrowing costs, rates of inflation, rates of growth, debt ratio, etc. among all countries but that is not the case with the EU.-If EU follows the guidelines they should have a more stable country in a few years-People are withdrawing cash from their accounts out of fear and there is smaller money supply and therefore banks must become smaller and may possibly lead to a recession-Relying on Germany and France to commit funds in the case that larger countries such as Italy and Portugal become bankrupt...
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This note was uploaded on 12/03/2011 for the course BUS 200 taught by Professor Tuli during the Fall '10 term at University of Wisconsin.
- Fall '10