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Essay text:
Established sovereignty and do not want EMU to get involved. They still want to have an influence on EU decision making policies.
• The main concern for monetary policy in Europe is how the ECB will trade off inflation increases versus output stabilization or employment creation. Also, how will they accommodate the different performances in different parts of the EU
• In general, the EMU financial markets were subject to different productivity growth than the UK. This is why they did not see the same outcome in 1998 the UK saw in 1992. The argument for this is that the EMU has low price flexibility and a need for labor market reform or institutional restructuring...
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