In the case of Italy, the benefit of a fixed exchange rate with the European Union outweighed the loss of a separate monetary policy.

Question

Quizplus · Accepted Answer

Italy, along with other EU countries, gave up its national currency and adopted the euro currency, leading to a fixed exchange rate with other EU countries. Despite losing control over its own monetary policy, the benefits of participating in a larger and more stable economic union outweighed the disadvantages for Italy.

In the Case of Italy, the Benefit of a Fixed