ABSTRACT
The benefits of MU – both direct and indirect – are potentially considerable. They include: a reduction in transaction costs and exchange rate risk; increased levels of trade; better price transparency; economies of scale; an improved business climate; and the strengthening of capital markets. These economic benefits are covered in the first section of this chapter. However, MU also has the potential to act as a catalyst for a wider range of reforms and as a means to strengthen the bloc’s international bargaining power. These issues are covered in the second section of this chapter under the title associated benefits.
