In particular, some observers considered the continuing existence of autonomous national fiscal policies as incompatible with a supranational monetary policy. The “one-size-fits-all” approach implied by the single monetary policy was, on account of the diverse nature of the currency area, criticised to give rise to permanently asynchronous economic developments. Critical observers therefore took the view that a stability-oriented monetary policy was doomed to failure.
Where do we stand five years later? The euro has been firmly and credibly established as a stable currency. The euro area has witnessed a period of low rates of inflation and low levels of long term interest rates. Most countries have had their lowest market interest rates for decades.