Editing Economic and monetary union (section)

== Processes in the European EMU ==
{{main|Economic and Monetary Union of the European Union}}
The EMU involves four main activities.<ref>{{Cite web|url=https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/economic-and-monetary-union/how-economic-and-monetary-union-works_en|title=How the Economic and Monetary Union works|website=European Commission - European Commission|access-date=2019-05-04}}</ref>

The first responsibility is to be in charge of implementing effective monetary policy for the [[Eurozone|euro area]] with price stability. There is a group of economists whose only role is studying how to improve the monetary policy while maintaining price stability. They conduct research, and their results are presented to the leaders of the EMU. Thereafter, the role of the leaders is to find a suitable way to implement the economists' work into their country's policies. Maintaining price stability is a long-term goal for all states in the EU, due to the effects it might have on the Euro as a currency.

Secondly, the EMU must coordinate economic and fiscal policies in EU countries. They must find an equilibrium between the implementation of monetary and fiscal policies. They will advise countries to have greater coordination, even if that means having countries tightly coupled with looser monetary and tighter fiscal policy. Not coordinating the monetary market could result in risking an unpredictable situation. The EMU also deliberates on a mixed policy option, which has been shown to be beneficial in some empirical studies.<ref>{{Cite journal|last=Blinder|first=Alan|date=September 1982|title=Issues in the Coordination of Monetary and Fiscal Policy|location=Cambridge, MA|doi=10.3386/w0982|doi-access=free}}</ref>

Thirdly, the EMU ensures that the single market runs smoothly. The member countries respect the decisions made by the EMU and ensure that their actions will be in favor of a stable market.<ref>{{Cite web|url=http://publications.europa.eu/web pub/com/factsheets/emu/en/|title=The EU and economic and monetary union|website=publications.europa.eu|access-date=2019-05-04}}</ref>

Finally, regulations of the EMU aid in supervising and monitoring financial institutions. There is an imperative need for all members of the EMU to act in unison. Therefore, the EMU has to have institutions supervising all the member states to protect the main aim of the EMU.

===Roles of national governments===
The economic roles of nations within the EMU are to:
* control fiscal policy that concerns government budgets
* control tax policies that determine how income is raised
* control structural policies that determine pension systems, labor, and capital-market regulations