However, as a result of the incompleteness of Economic and Monetary Union the impact of these shocks reversed some of the progress made towards integration, just when they were most needed. Thanks to a collective effort by European citizens and their leaders, the existential threat to the euro has been overcome.
banks--probably ought to be included in the scope of the analysis. It is important to note that adherence to such a rule is no guarantee that all financial crises can be avoided. If the confidence of domestic residents is undermined, they can generate demands for foreign exchange that would not be captured in this analysis.