If the governments of the euro area voluntarily give up their national currency – as they have done – and if citizens of the euro area acknowledge the economic benefits of using one single currency in an enlarged economic area, these citizens will start asking themselves why it is possible to have a single currency, but not to eliminate other barriers between the countries of the euro area.
This makes it of the essence for governments to be sure that they will not fall short on the adjustment, as it would seriously deteriorate further its credibility and, consequently, the costs would grow exponentially. In some cases, this type of considerations might make advisable some short-term overshooting in the adjustment process. Third, under a crisis authorities will be facing an extremely volatile scenario.