I would merely make the point that the costs of not being flexible might be greater for small countries in the event of a downturn. Monetary policy after enlargement I would also like to briefly discuss how these issues apply to enlargement. First, the points made regarding small countries currently in the euro area apply with even greater force to accession countries.
Given the relative size of accession countries, monetary policy for the enlarged euro area will be little influenced by their inflation rates. Accession countries are in general less converged in real terms than the initial EMU members were when monetary union began. This is true when measured on the basis of GDP per capita, and when adjustments are made for differences in purchasing power.