What are the benefits and costs of using a common currency f

What are the benefits and costs of using a common currency for Germany, Greece, and the EU?

Solution

Benefits:

Europe use to have number of currencies that required complex management and this is all gone with introduction of European currency the EURO

Euro has increased trade between the european nations

Euro zone still is the largest economy in the world

Euro is a very strong currency

Trade in general became too easy within european borders, Goods, Services, People travelled in much more efficient way,

Problems:

Rich, Industrial western european nations quickly became beneficiaries of Euro currency

Exports to nations within euro zone increased rapidly creating huge debts in less industrial nations like greece

Some nations in Europe just did not have kind of sophestication to export to western european nations so trade deficit increased for those nations

In general Idea of Euro was great, but smaller countries now loose their central bank and cannot regulate their own currency. They loose fiscal and monetary tools so it becomes too difficult for them to manage their own economy

European union as one nation is the only way to have Euro, One currency several nations might not be great idea.