7. Several countries have opted to join currency unions. Examples include those in the Euro area, the

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7. Several countries have opted to join currency unions. Examples include those in the Euro area, the CFA franc union in West Africa, and the Caribbean currency union. This involves sacrificing the domestic currency in favor of using a single currency unit in multiple countries.

Assuming that once a country joins a currency union, it will not leave, do these countries face the policy trilemma discussed in the text? Explain.

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International Macroeconomics

ISBN: 978-1429241038

2nd Edition

Authors: Robert C. Feenstra ,Alan M. Taylor

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