This came up in conversation between my mom and I talking about Euros and how cool that is to me (Canadian). I then wondered why we can’t just have that everywhere and all she could say was “it wouldn’t work, what about less profitable countries” and I said “they’d just make/have less?” She did not like that answer and I really wanna know the real reason on why that wouldn’t work bc in my mind since we made up money why can’t we just make up how new money works???
Please explain like a teacher explaining why a kid can’t share 3 m&ms with 28 people
In: Economics
To have unified currency you need to have unified monetary policy…. that is a lot of independence for an country to give away. Tax policy and all sorts of very critical things depend on it. Eurozone is very unusual in how tightly different independent countries are allied and how much the laws and policies are aligned. Without such a deep alliance, you can’t really share a currency. Well, you can have dollarization, but that’s not quite the same thing, its a very raw deal for the country using a currency it doesn’t control.
Latest Answers