Under the Maastricht Treaty, a country may adopt the euro only if its government budget deficit is

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Under the Maastricht Treaty, a country may adopt the euro only if its government budget deficit is less than 3 percent of GDP. What is the rationale for this requirement?

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:47 AM

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Under the Maastricht Treaty, a country may adopt the euro only if its government budget deficit is

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As described in Chapter 14 high budget deficits have historically caused high inflation Countries wi...View the full answer

Money Banking and Financial Markets

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