WHO WANTS THE EURO - AND WHY - ECONOMIC EXPLANATIONS OF PUBLIC-ATTITUDES TOWARDS A SINGLE EUROPEAN CURRENCY

The paper looks at whether public attitudes towards a single European currency held in the European Union member states reflect a rational e valuation of the involved benefits and costs. It finds that they do: t he looser monetary and fiscal policy was in the past, and the more tim e a country spent in the EMS, the more citizens welcome the euro. Atti tudes towards the euro do not seem consistent with attitudes towards a European Central Bank, however. Upon closer scrutiny, opponents of a single currency appear to be less consistent and less rational in thei r responses than proponents.