Comments on Final Exam questions

For relevant readings on optimum currency areas and monetary unions, look at pages 279-283 in the Carbaugh text. You'll get the lowdown on "asymmetric shocks". But essentially, an asymmetric shock is a "negative" economic situation in one area, usually recession and unemployment, but not in the rest of the grouping of states or countries. E.g., recession and unemployment in West Virginia or Spain, but not in the rest of the US or EU.

Problem 1 is an "opinion" question. But since you are now "informed" you'll have good arguments supporting your opinion.