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Before the existence of a common currency, the imbalance would typically have caused an exchange-rate adjustment that is, the peseta would have fallen in value, and Spain's cost of borrowing would have risen, and the Spanish economy would have cooled but because there was only one shared currency, the imbalance was continually exacerbated, rather than corrected.
Before the existence of a common currency, the imbalance would typically have caused an exchange-rate adjustment — that is, the peseta would have fallen in value, and Spain's cost of borrowing would have risen, and the Spanish economy would have cooled — but because there was only one shared currency, the imbalance was continually exacerbated, rather than corrected.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com