A single market is not
segmented by national
regulations, taxes or informal
practices.
Non-tariff barriers are different
national regulations or practices
that prevent free movement of
goods, services, and factors
across countries.
A monetary union has
permanently fixed exchange
rates within the union, an
integrated financial market and
a single central bank setting the
single interest rate for the union.
The Maastricht criteria for
joining EMU said that a country
must already have achieved low
inflation and sound fiscal policy.
An optimal currency area is a
group of countries better off
with a common currency than
keeping separate national
currencies.
A federal fiscal system has a
central government setting
taxes and expenditure rules that
apply in its constituent states or
countries.
Transition economies are
making the adjustment from
central planning to a market
economy.
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