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Abstract
There are no clear precedents for European monetary integration. It would therefore be unwise to rely too closely on evidence drawn from other monetary systems for an indication of where, when and how problems might arise under the new monetary regime. This article comprises four sections. The first deals with issues of economic convergence and the problems associated with viewing the euro zone countries as an optimum currency area. The second moves on to political questions about the accountability of the European Central Bank (ECB) and its credibility in operating a single monetary policy which targets price stability. In the third section, I consider arguments concerning the implications of the relationship between labour mobility and material interest for the workings of a single monetary policy across the euro zone. In the fourth section, I raise broader questions about cultural divergence in economic behaviour within the euro zone.