Please comment on the most important attributes regarding optimum currency

areas from the European Monetary Union point of view.

From the european comission website, the Economic and Monetary Union (EMU)
"involves the coordination of economic and fiscal policies, a common monetary
policy, and a common currency, the euro. Whilst all 28 EU Member States take part
in the economic union, some countries have taken integration further and adopted
the euro. Together, these countries make up the euro area."
One of the benefits of using the same currency as other countries is :if you choose a
country with a better central bank you will get a lower and more stable inflation
rate. If a country adopt euro they are no longer in control of printing euro; this can
make the country more commitment and credible to the creditors. If a country is
printing up money to cover up the dept of the country, the currency will become
debased and won't have the same value as when the landing was made. If you land
euro to a country you know that the country central bank cannot print up more euro
in order to pay you back, this can result to a lower interest rate.
Price of a product can be seen in another country because of the same currency.
When the phenomena of inflation appears in one country, that country cant change
the exchange rate because its fix, it cannot be devaluated. Everything becomes
much expensive so the demand will decrease
When you have 2 currencies there is some transition cost with trading one currency
for the other. It's more difficult to compare your prices and your cost when the
prices are in 1 currency and the cost in another and also you have to worry about
foreign exchange risks. Adopting a currency can increase trade because it reduce
the cost of trading.
You don't have a central bank so this can result to a no independent monetary
policy. This can result to a reduce ability to respond to shocks. Greece and Germany
are different from another if we speak about size, exports, specialization etc. The
countries that are situated at the periphery have very little control over the
monetary policy. The European Central Bank was build to respond less to shocks in
the periphery countries but this has began to change since the shocks have been so
were large and important. Every country that has the same currency will suffer the
shock that occurs in one country but not all the countries will experience the same
effects over a specific shock. This effect can be different if we talk about inflation,
change in aggregate demand, exchange rate, etc. One way to respond to shocks is
internal devaluation: this means when 2 countries are trading and they have the
same currency when the demand decreases in a country the price decreases too
and in the end the wages paid in the other country decreases proportionally with
the price o goods. Another way is labor mobility. Workers to move from where
wages are low to places where wages are high *LABOR MOBILITY) A country which

can move its labor and factor mobility to another region easy and fast , which can
invest in another country with the same currency
In conclusion adopting EMP can have different benefits like....but also can have
different costs like....