The new European currency was born nearly three years ago when Europe entered Stage Three of economic and monetary union. However, compared with the dollar and its long tradition, the euro is a “rookie” in the monetary policy league. However, this “rookie” took the field after going through a tough “training camp” on the field of stability.
It envisages that each country (or sub-region, in the case of the ECCU) will have established an overarching framework for financial stability, led by the central bank. The regional architecture then becomes the mechanism which binds together the national and sub-regional financial stability functions.