International Advances in Economic Research

, Volume 3, Issue 3, pp 240–244 | Cite as

Economic policy implications of the implementation of the single European currency

  • Miguel-Angel Galindo Martin


As it is well known, before the next century a single European currency, the Euro, will be introduced and European products will enjoy an extensive market. Economists have focused their attention on analyzing the different costs and benefits derived from the implementation of the single currency. With regard to the benefits of such an implementation, the most important ones are as follows. The introduction of a single currency will encourage internal demand and will help economic agents save transaction costs; labor distribution will improve; there will be less uncertainty in the markets; and, lastly, it will improve economic growth if technical transmission is facilitated. But there are also problems in the implementation of the single European currency. Credit institutions, especially banks and savings banks, will lose their income from the currency exchange process. It must also be considered that the economies will depend on the higher development level of the German economy. The goal of this paper is to analyze the costs and benefits derived from the implementation of a single currency.


Economic Growth Transaction Cost Policy Implication Economic Agent Development Level 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© International Atlantic Economic Society 1997

Authors and Affiliations

  • Miguel-Angel Galindo Martin
    • 1
  1. 1.University Complutense de MadridSpain

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