If you were one of the countries in this zone, do you think it was a good idea to be part of it -- looking back.Regards

drona,From my own experience I would have to say that on balance it is a good idea to be part of it.However there has been some downside associated with it.In Ireland for example, there has been a significant increase in house prices as a direct result of reduced interest rates. (Ireland has a high precentage of home ownership like the UK.) The result of this, is that it is now very difficult to get onto the property ladder.Secondly, the changeover period lead to a lot of inflation. Everything was rounded up when we switched to euros. Many of the service industries took it an opportunity to factor in a price increase.On the plus side, the low interest rates result in very cheap money being available.Travel within the eurozone, is easy.Rgds

QuoteOriginally posted by: ijoocOn the plus side, the low interest rates result in very cheap money being available.Travel within the eurozone, is easy.Since when is cheap money a good thing?And to my mind, a one size fits all monetary policy is a huge price to pay to transfer resources from bureaux de change to travellers.The economic rationale is pretty flakey without reasonable factor mobility (especially labour). I read the other day (don't remember where) that only 1.5% of EU citizens live in an EU country other than their own.OTOH, I'd say that for a country like Italy, EMU has been fantastic, as its allowed them to eliminate their huge FX volatility and risk premia. This could apply to Portugal, Spain, Greece as well. For the others, its harder to identify the economic benefit.

Without going into specifics why and how and who:IMHO: The Euro is the most retarded idea economists & politicans ever came up with... Well, that and JPMs EDS.

Countries like Greece or Spain have benefited by Euro as far as the currency is concerned. However, they have developedstrong inflation and the rapid decrease of interests rates has led to high property prices and low income from savings.

QuoteOriginally posted by: GerasimosCountries like Greece or Spain have benefited by Euro as far as the currency is concerned. However, they have developedstrong inflation and the rapid decrease of interests rates has led to high property prices and low income from savings.I think the surge on inflation was a result of the volatility in oil prices. Overall the inflation in the eurozone is low that's why interest rates are decreasing...