Does the euro make structural reforms and disciplined policy more or less likely? Frankly, I do not know the answer to that question. Fortunately, we do not live in a zero sum world. The structural reforms and monetary and fiscal policies that would make the euro area stronger and more competitive would certainly enhance the strength of the world economy as well.
In view of our close economic and financial links with the United States, I recognize the attractions of the reduced currency uncertainty and lower transactions costs that would be part of a fixed exchange rate arrangement with the US dollar.