European Monetary Union can be defined as the coming together of European member states into one organized economic system with the Euro as the national currency of these member states. This process occurred through a three phase process. The first phase included complete freedom for capital transactions, increased cooperation between central banks, free use of the European currency unit, and improvement of economic convergence. The second phase saw the establishment of the European monetary institute, ban on the granting of central bank credit, increased coordination of monetary policies and the strengthening of economic convergence. In addition, there was the Continue reading...