One more gain is that a currency union provides a potential for reinforcing fiscal discipline and credibility of monetary policy. There are also disadvantages to a common currency. They relate to the loss of two important macroeconomic adjustment tools, namely independent monetary and exchange rate policies.
But some critics of forward guidance say that central banks should not try to “fine-tune” markets at the short end, either. Nagel: To be honest: I really don’t understand this argument. This “fine tuning” was even greater before the crisis.