One consequence of this is that we are moving to a world where financial shocks are more easily absorbed than they used to be, because there is a larger pool of players available who are willing and able to switch quickly from one market to another.
When the inevitable correction comes, there is no independent monetary policy to smooth the adjustment and a serious bust follows the boom. Such boom-bust patterns were clearly observable in some first-wave eurozone members like Portugal, Ireland and Spain. Better wait with euro adoption, the argument goes, until catching-up is more progressed and the equilibrium real appreciation is smaller.