A country that adopted the euro can use monetary policy as an instrument of economic policy.

Question

Quizplus · Accepted Answer

Once a country adopts the euro, it becomes a part of the Eurozone and loses control over its monetary policy. The European Central Bank (ECB) sets the monetary policy for all the countries in the Eurozone. Therefore, the country cannot use monetary policy as an instrument of economic policy. It can only use fiscal policy and structural reforms to boost its economy.

A Country That Adopted the Euro Can Use Monetary Policy