First, although it is not the end of the process, the introduction of the euro can be considered to be a major milestone in the long process of integration initiated by the European Community more than 40 years ago. Moreover, the euro can be confident that it rests on extremely solid foundations.
BIS Review 35/2007  1  inflation generally detracts from the standard of living, hinders the process of capital formation and economic growth, and in some countries has even led to political and social instability. Such episodes also show that a full recovery from the adverse effects of severe inflation can take many years.