International Finance
Due In 6 hours. Write Half a page for each question. No sources needed. Answer questions thouroughly as possible.
1) What is an optimum currency area? Is the European Union (EU) an optimum currency area?
Explain your answer based on the criteria of an optimum currency area.
(2) Why would the failure to create a unified EU labor market be particularly harmful to the
prospects for a smoothly functioning European economic and monetary union (EMU)?
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