If you don’t need to target a fast-moving variable like an exchange rate, then policy doesn’t need to react and transmit the shocks that hit the currency on to the real, domestic economy. As an illustration,  1  2  Paul Krugman, Latin America’s swan song (http://web.mit.edu/krugman/www/swansong.html).
These three features of a shared deposit insurance scheme would strengthen the individual responsibility of Member States, banks and shareholders and further incentivise risk-based behaviour. And this would ultimately be to the benefit of the EU and all its member countries. 4. Finding a common way in Europe Ladies and gentlemen, I can’t say it often enough: Europe is our shared opportunity.