MMP Blog #29: What about a country that adopts a foreign currency? Part Two
There was never a strong argument for adopting the Euro, and the weaknesses have been exposed. Currency union without fiscal union was a mistake.
There was never a strong argument for adopting the Euro, and the weaknesses have been exposed. Currency union without fiscal union was a mistake.
A country might choose to use a foreign currency for domestic policy purposes. Here, however, we are examining a nation that does not issue a currency at all.
The fundamental point to be made here is that the Euro arrangement was flawed from the beginning.