A Rapid or Evolutionary Approach: The EEC’s Adoption of the ECU as a Common Currency

Shulman, Susan B. | January 1, 1991

Perhaps the EEC should move to a common currency, but there is no reason to rush towards such a dramatic change. According to optimal currency area theory, the current system of limited flexibility within the EEC is ideal. Any move to a common currency should be flexible in that it initially allows member states the ability to use national monetary policy if necessary. The British proposal allows just this kind of flexibility.