Organisation of the two monetary unions A second area in which our different histories have played a role is in the way in which the Eurosystem and Fed are organised. While the Fed was created ‘from scratch’ by the Federal government for a single country, the Eurosystem was established when twelve sovereign states voluntarily gave up their monetary autonomy.
Conclusion We have lived through various bouts of financial market volatility before and doubtless these will recur from time to time. To some extent, this is inevitable. But we can limit the damage from these mood swings by keeping a strong focus on improving growth fundamentals. It is surely time that policies beyond central bank actions did more in this regard.