Author Question: Explain the costs and benefits of a single currency. What will be an ideal ... (Read 87 times)

Shelles · **on:** Jun 30, 2018

Explain the costs and benefits of a single currency.

What will be an ideal response?

Question 2

The best way to address differences in labor and environmental standards is through trade barriers.

Indicate whether the statement is true or false

huda · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Benefits include the reduction of transactions costs from currency conversion and reduction of exchange rate uncertainty. Costs include the lack of ability to pursue independent monetary policies, and the lack of ability to use the exchange rate as a buffer against external shocks.

Answer to Question 2

FALSE