Consider the following questions in relation to the U.S / Euro exchange rate and the relationship between the economies of the United States and the European Union. Whenever you need external research, please use the web sites of the St Louis Fed (FRED), the web sites of the IMF, the Eurostat, the European Commission, the WTO, the CIA Factbook, or other educational, government, and/or academic sources.

*Answer all parts of the question , and visit external webpage FRED as needed*

Q. As the currency of the European Monetary Union (EMU), the Euro is managed by the European Central Bank (ECB) which administers monetary policy for the EMUs (or the Eurozone's) 19 member states.Provide an in-depth description.

• What are some of the reasons for which the Euro was set to and continues to operate under a freely floating exchange rate regime?

• Would it be a good idea to switch to some form of a fixed exchange rate regime?