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.
In attempting to refute the politicians' claim, the author gives an example of a state of affairs, assumed to be relevantly similar, in which the allegedly incompatible elements coexist.