Originally posted at forex factory on March 25, 2008.
Quote:Originally Posted by johnedoeyeah and the euro is a figment of our imagination……get a grip.
The advantages of the Euro were more clear cut than those of the Amero. Picture the 50 states of the U.S. all being their own country and having their own currency and imagine what a hassle it would be.
That being said the Euro is still a young currency at around 8 years old and it still needs to stand the test of time IMO. The Euro countries have no choice but to keep coming closer together. Not having a strong federal government like the U.S. and losing independant monetary policies I feel is a major disadvatange. That is partly why the U.K. keeps their pound.
What if Germany requires an increase in rates, while Spain needs an interest rate cut to stimulate demand. What is the ECB to do? That is just one of the reasons why I feel their governments are going to have to become more connected.
Just my 2 cents