Labor Mobility and the Euro. Unlike the United States, which has high levels of interstate mobility, labor is less mobile from one part of Europe to the other because workers would have to move from...

Labor Mobility and the Euro. Unlike the United States, which has high levels of interstate mobility, labor is less mobile from one part of Europe to the other because workers would have to move from one country to another. What challenges does the lower level of labor mobility in Europe pose for the viability of the euro system? (Related to Application 3 on page 427.)