A currency union is a bad idea if the economies that compose it require different monetary policies.

Question

Quizplus · Accepted Answer

Different economies require different monetary policies based on their specific needs and conditions. If they are forced to use a common currency, it can limit their ability to implement appropriate monetary policies, leading to economic imbalances, inflation, and other issues. Therefore, a currency union is generally considered a bad idea if the economies involved have different monetary policy requirements.

A Currency Union Is a Bad Idea If the Economies