However, regional differences in economic performance are an inescapable feature of any large currency area. The existence of regional differences is certainly not news to a US audience. Inflation here in San Francisco is different to that in Dallas or New York.
Significant differences in terms of inflation and output levels also exist in the United States, and the Federal Reserve has nonetheless conducted its monetary policy smoothly and successfully. In a sense, the Federal Reserve conducts a “one-size-fits-all” monetary policy just as the ECB does.