The document discusses the costs associated with adopting a common currency between countries. It outlines several costs such as the loss of independent monetary policy which prevents countries from moderating demand shocks and influencing inflation rates. Additional costs include labor markets being affected, divergence in wage and price developments between countries, and the costs for individuals and institutions to adjust to the new currency. Overall, adopting a common currency is difficult for diverse countries and the costs may outweigh the benefits except in currency areas like the Eurozone where countries are more economically integrated.

1. By Parul Tongaria Nachiket Karajagi Group 2 Common Currency and its Costs

3. Timeline of currency/money 1000 BC Metals used as medium of exchange 600 BC First Coins 1000 AD Paper money in China 1500 AD Banking emerges In Europe 1700 AD David Ricardo Invents Gold standard 2000 AD Managed paper currencies

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