Figure 10: Scatter Plot of Inflation and Growth in Euro Area Countires (1999-2006) Growth  0.12 0.1 0.08 0.06 0.04 0.02 0 -0.02  Inflation 0  1  2  3  4  5  6  Source: ECB and EU AMECO database  III. Conclusions  A single-size monetary policy has worked extremely well in the euro area.
I have argued that this is partly the result of endogenous changes brought about by the very existence of the monetary union. Increased trade and financial integration, spurred on by the common currency, have contributed to making the euro area closer to an optimum currency area. In addition, the credibility of the ECB’s monetary policy has delivered low interest rates and price stability.