1. What criteria would need to be satisfied for the countries of the EU to constitute an optimal currency area? Does the EU at present satisfy these criteria, in your view? 2. Discuss the economic...

1. What criteria would need to be satisfied for the countries of the EU to constitute an optimal currency area? Does the EU at present satisfy these criteria, in your view?

2. Discuss the economic advantages and disadvantages to the UK of participation in EMU.

3. What is an ‘anchor’ currency? Why should a country wish to ‘anchor’ its currency to another? 6. Evaluate the measures available to the authorities to moderate currency variation in a floating exchange rate regime.