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Which of the following statements is INCORRECT regarding the Greek Debt Crisis: a Short of highly synchronized economies, currency unions require mechanisms to even out
Which of the following statements is INCORRECT regarding the Greek Debt Crisis:
a | Short of highly synchronized economies, currency unions require mechanisms to even out member countries' difference in growth to succeed, such as a fiscal union. |
b | Member countries in a currency union can have different economic development, which can cause problems as they cannot respond to their domestic issues with independent monetary policy. |
c | It is an example of the Trilemma which means any monetary authority would have to give up one of the three monetary goals. |
d | Currency unions cost countries monetary independence without providing any benefit. |
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