As we know, monopolies – both those exercised by companies and centralist governments – are harmful to growth and welfare. Competition between jurisdictions can often be as healthy as in the market economy. In that respect, the EU is not far away from the set-up in the US, if one disregards some key areas like foreign and defence policy.
Constâncio, V. (2016), “The challenge of low real interest rates for monetary policy”, lecture at the Macroeconomics Symposium at Utrecht School of Economics, 15 June 2016 Constâncio, V. (2016), “Challenges for future monetary policy frameworks: A European perspective” speech at the 19th Annual International Banking Conference “Achieving Financial Stability: Challenges to Prudential Regulation”, Chicago, 4 November 2016. Deaton, A.