In discussing the pros and cons of monetary union among several European nations, some politicians have claimed that living standards in the countries concerned would first have to converge if monetary union is not to lead to economic chaos. This claim is plainly false, as is demonstrated by the fact that living standards diverge widely between regions within countries that nevertheless have stable economies.
The author argues that those making the claim are mistaken about a temporal relationship that has been observed in an attempt to refute the politicians' claim.