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bour mobility is limited, income transfers are difficult, and differences exist in the labour market and growth rates. Mundell claimed that when countries are in a monetary union and use a common currency, they cannot absorb asymmetric shocks properly unless, among other circumstances, labour mobility is unlimited.

Mundell II
In Mundell's article 'Uncommon arguments for common currencies' which published in 1973, an alternative theory is illustrated. Mundell emphasised 'the common currency assures an automatic and equal sharing of the risk of the fluctuation', a common currency has advantages in overcoming economic shocks. Mundell II argues that it is easier for member countries to stay inside a monetary union than outside it since the private insurance would assist against asymmetric shocks. More specifically, it will be easier for member countries to borrow in the capital markets of the monetary union when hitting by a negative shock, as a result it will be easier for member countries to smooth consumption. In addition, the exchange rate would be a source in arising asymmetric disturbances; especially capital mobility of financial market is very high.

The criticism of Mundell II becomes more obvious in terms of political context. If financial markets in a monetary union provide insurance to reduce asymmetric shocks, the need to integrate national budgets for political means becomes weaker. Hence the motive to form a political union is even weaker. However, the Mundell II point out that if there is no budgetary union, it would be optimistic to say that private financial markets would provide insurance against asymmetric shocks. The financial markets will only provide insurance to those who possess high assets stock in the financial markets. Since wealth is not equally distributed, the private provision of insurance will overwhelmingly support the wealthy and keep the poor relatively uninsured. In addition, the Mundell II theory ignored the possibility that countries may involve in a position of a 'bad equilibrium'. If there are not adequate instruments to lead the economy out of the bad equilibrium, countries would get caught in the bad equilibrium after a negative shock. It is a major problem for the future of EMU if there is no adequate instrument in a monetary union. This is reinforced by the fact that different member countries of EMU continue to work in different directions due to the absence of a political union.

Weaknesses of the Eurozone 欧元区的弱点
In the last ten years, the euro has demonstrated that there are many efficiency gains by adopting a common currency (i.e. reduced transaction costs of exchanging currencies, eliminated exchange rate uncertainty, and increased transparency in prices), particularly if the currency becomes not only an international currency but also a global currency. However, maintaining various standards requires difficult adjustments and constant surveillance of every single member state in Eurozone.

As the economic crisis has hit the world, certain Eurozone Member States - Greece, Portugal and Spain are being seriously affected. The Greek tragedy is making the EU realize that highly indebted countries can put the EMU at risk and that measures must be taken without delay.

Institutional Weakness 制度缺陷
Article 102.a of the Maastricht Treaty establishes that member states and the