Economics, 3rd Edition

Labour Mobility 

Alternatively, suppose that labour is highly mobile between the member countries of 

the currency union: unemployed workers in Germany simply migrate to France and find a job. Again, 

the  macroeconomic imbalance is alleviated, since unemployment in Germany will fall as many of the 

 unemployed have left the country, and inflationary wage pressures in France decline as the labour force 

expands with the migrants from France. Therefore, it is clear that labour mobility may in some  measure 

cushion a currency union from