stages in their cycles. The UK is growing reasonably well, Germany is having problems. This is the reverse of the position in 1990. Since the war the UK economy has tended to have an economic cycle closer to the US than the EU. It has changed because interest rates are set in each country at the appropriate level for it. One central bank cannot set inflation at the appropriate level for each member state. 4. Loss of national sovereignty is the most often mentioned disadvantage of monetary union. The transfer of money and fiscal competencies from national to community level, would mean economically strong and stable countries would have to co-operate in the field of economic policy with other, weaker, countries, which are more tolerant to higher inflation. 5. The one off cost of introducing the single currency will be significant. The British Retailing Consortium estimates that British retailers will have to pay between 1.7 billion and 3.5 billion to make the changes necessary. Such changes include educating customers, changing labels, training staff, changing computer software and adjusting tills. ...
