An appropriate solution to our country’s domestic problems can only be derived from the understanding of all these challenges. Regrettably, however, we must bear in mind that there is no textbook solution to guide us in the future. We will be unable to find the correct prescription through approaches based upon our previous understandings of the economy.
The obvious starting point is the monetary trilemma: financial integration calls for a choice between a stable exchange rate and an independent monetary policy. In Europe, the monetary union provides a unique option: the sharing of monetary autonomy among the member countries through the elimination of national currencies, with the external value of the euro fluctuating against the rest of the world.