In the euro zone, monetary policy spontaneously increases the divergence between the member countries' economies; it must therefore be complemented by a component that leads to convergence

In the euro zone, as in all currency areas, the common monetary policy increases the divergence between the member countries' economies. The reason is that the common interest rates are too high for countries with weak economies, and too low for countries with strong economies. To avoid amplifying the divergence between countries in this way, monetary policy must include a component that, on the contrary, leads to convergence between countries' economies. Possibilities include : Low interest rates relative to the euro-zone countries' average situation, which prevents them from penalising the countries with the weakest economy; Control of yield spreads between countries, which prevents a situation where the weaker countries are further penalised by higher risk premia; Monetisation of fiscal deficits, which can give rise to higher deficits in the troubled countries. We can see that all these convergence mechanisms are in place currently .