What are some macro policy issues that have arisen in a member of the Eurozone?

Question

Ive been set this essay question:

Discuss the macro policy issues that have arisen in any one of the countries that have joined the euro zone with particular reference to how membership of a wider currency area affects the monetary and fiscal policy choices available.

I cant find any info on specific countries, could anyone help? or tell me where has good information for a question like this?

Thanks!

Answer 1

You might try looking for information on the Stability and Growth Pact, which dicatates what countries can and cannot do in order to stay in the EU community. Keep in mind that there are two groups of countries in the EU -- those that use the euro as their only currency, and those that have their own currency but have adapted certain EU restrictions, such as the Stability and Growth Pact.

Answer 2

Whatever the problem, the point about the euro zone is the inability to use an independent monetary policy to do anything about it. There are also some in-principle restrictions on fiscal policy, but these are not strictly enforced.

The issues to look more closely into are most likely to be in the smaller countries, for example inflationary pressures in Ireland from boom-boom growth some years ago, or persistent very high levels of unemployment in Spain.

But you could also cite slow economic growth in Germany, especially the former West Germany, since shortly after unification.

Answer 3

Allan that was very interesting i didn't know that as i thought they all had their noses in the trough