Articles Of Incorporation Add EU Currency Field For Free

Economist Robert Mundell first outlined criteria for an OCA, which are based on the degree of integration and similarity between economies. The euro is an example of an application of an OCA, though events such as the Greek debt crisis have put this to the test.

General AdvantagesMembership in a community of stability, democracy, security and prosperity;Stimulus to GDP growth, more jobs, higher wages and pensions;Growing internal market and domestic demand;Free movement of labour, goods, services and capital;Free access to 450 million consumers.

What was the main benefit of a single European currency? The complete elimination of both exchange-rate risk and currency conversion costs within the European Union.

It enables most goods, services, money and people to move freely throughout most of the continent. It has certainly become much easier to move around Europe all EU citizens have the right to study, work or retire in any EU country.

The euro is the official currency of 19 European Union countries which collectively make up the euro area, also known as the eurozone. Some EU countries have yet to meet the criteria required to join the euro area while Denmark has opted not to participate. Within the euro area, the euro is the only legal tender.

It took the United States roughly 150 years to become an optimal currency area (NYSE:OCA), according to economic historian Hugh Rockoff.Since then, the U.S. economy has often been held up as the best example of a currency union that meets the OCA criteria.

The euro makes it easier, cheaper and safer for businesses to buy and sell within the euro area and to trade with the rest of the world. improved economic stability and growth. better integrated and therefore more efficient financial markets. greater influence in the global economy.