Do the costs of forming a currency union fall or rise as the degree of labor market integration rises among member countries?

Question

Quizplus · Accepted Answer

When there is a greater degree of labor market integration among member countries in a currency union, the costs of forming the union will fall. This is because labor can move to other member countries to find work when there are negative macroeconomic shocks at home, reducing the likelihood of high unemployment rates and other economic challenges. As a result, the member countries will be better positioned to weather shocks and other challenges, leading to lower overall costs for the currency union.

Do the Costs of Forming a Currency Union Fall or Rise