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Q. Why did the EU countries move away from the EMS toward the goal of a single shared currency?
Answer:
1. To produce a superior degree of European market integration by removing the threat of EMS currency realignments.
2. To decrease German dominance of the EMS monetary policy.
3. Given the shift to complete freedom of capital movements within the EU fixed however adjustable currency parities may possibly lead to ferociously speculative attacks as in 1992 - 1993.
4. To guarantee the political constancy of Europe.
Q. Explain why price levels are lower in poorer countries. Answer: One theory explicate the difference in prices on different endowments of capital and employment Bhagw
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