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more importantly will the european community last that long? i think it is in more trouble than most people. here's why. by losing control of monetary policy, the individual countries are losing control of part of their countries. here is an example of how this problem can manifest itself -

Ireland - a country that due to many factors including favorable tax rates and a pro-business government, has seen very good growth over the past five years. as a result, there have been some inflationary signs recently. Most notably in housing prices but in other areas of the economy as well. With relatively high growth and the beginning of higher prices, it would have been the perfect time to raise interst rates. but what happened late last year. ireland lowered rates because it had to match those of most other eu countries. as the resulting higher inflation creeps into the economy, ireland will not be able to raise rates independently of the european central bank. this is already breeding some anti eu sentiment there according to an irish friend of mine.

is fiscal policy enough to control inflation? i think we all know the answer. i guess that business cycles in each country should converge in the long run, but as keynes said, we'll all be dead.

is it possible for a member country to vote itself out of the eu? i don't know the answer but suspect if it is possible, it will be voted on at some point.

i look forward to discussing this further.

Howard
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