The European monetary union

This paper examines how the formation and implementation of the Eurosystem correlates with benefits to be gained from cooperation with members along with competition with the U.S. and the Rest of the World (ROW). The findings suggest that protectionism is the dominant reason for the creation of the European Union (EU). Both the total gains for member countries from groupings such as the Eurosystem or NAFTA are greater than the sum of the gains each member can command individually. Profits, therefore, remain the driving force behind the formation of the European Monetary Union.