Elaborate the main reason for the EU to allow fixed exchange rate system. The text argues that the prospects of successful fixed exchange rate areas in Europe seemed bleak when the inflation rate...

Elaborate the main reason for the EU to allow fixed exchange rate system. The text argues that the prospects of successful fixed exchange rate areas in Europe seemed bleak when the inflation rate between member countries varied widely. Justify the effect of a widening inflation range on the prospects of fixed exchange rate in EU?