Problem
1. Imagine that the EMS became a monetary union with a single currency but that it created no European Central Bank to manage this currency. Instead, imagine that the task was left to the various national central banks, each of which was allowed to issue as much of the European currency as it liked and to conduct open-market operations. What problems can you foresee arising from such a scheme?
2. Why would the failure to create a unified EU labor market be particularly harmful to the prospects for a smoothly functioning EMU?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.