Those terms have to take account of the differing commitments of the central banks inside and outside the euro area. II In order to explain the relationship between economic convergence and EMU, there is, in the first place, a fairly simple textbook answer. By definition, a monetary union abolishes, once and for all, the instrument of exchange rate adjustment between the participating economies.
The countries taking part must be able to do without that instrument for ever - even if structural changes occur.