Monetary union: still coming in Europe and North America?

Economic stability, international competitiveness and inflation are the primary factors by which a monetary or exchange rate system is based. A European Monetary Union (EMU) has been proposed for establishment in European countries over floating exchange rates. This monetary union assumes the unified acceptance of a single monetary policy to prevent inflation. The system's advantages over the floating exchange system includes less impact from financial shocks and greater predictability of price and risk movements.