7. Conclusion
We believe that the benefits of having a common currency outweigh the costs of having it. Our discussion has shown that the EMU has achieved economic stability and cost reductions. Also, countries are already showing signs of confidence in the currency by using a greater proportion of the euro as reserves. We caution that there are still many things that ECB can improve on such as stimulating economic growth and removing structural rigidities. Furthermore, with the future enlargement of the EMU to poorer performing countries, the central bank must have vision and have flexibility in its policies to cope with potential problems.
There is much to be optimistic about the euro and we believe it will outperform the dollar in time to come.
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