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Reflections on monetary union

“It is clear that such agreement will be limited in inverse proportion to the homogeneity and the similarity of outlook and tradition possessed by the inhabitants of the area. Although, in the national state, the submission to the will of a majority will be facilitated by the myth of nationality, it must be clear that people will be reluctant to submit to any interference in their daily affairs when the majority that directs the government is composed of people of different nationalities and different traditions. It is, after all, only common sense that the central government in a federation composed of many different people will have to be restricted in scope if it is to avoid meeting an increasing resistance on the part of the various groups which it includes.”

Friedrich Hayek, ‘The Economic Conditions of Interstate Federalism’, 1939

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