Top Posters
Since Sunday
28
o
8
C
6
d
6
A
5
H
5
n
4
t
4
d
4
p
4
r
4
s
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
sheila sheila
wrote...
Go to Answer
Posts: 66
Rep: 0 0
3 months ago
Why do countries who are members of a currency union have difficulty recovering from a recession?
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
Read 46 times
1 Reply
Replies
Answer verified by a subject expert
whtsi_ep3whtsi_ep3
wrote...
#1
Posts: 82
Rep: 0 0
3 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Countries with a flexible exchange rate regime can devalue their currencies during recessions and thus increase their net exports, stimulating the economy. Devaluation is not possible when a country is a member of a currency union unless the common currency is devalued. Therefore, member countries in a currency union have difficulty recovering from recessions.
1

Related Topics

sheila Author
wrote...

3 months ago
Correct Slight Smile TY
choih94
wrote...

Yesterday
You make an excellent tutor!
sweetalia
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  269 People Browsing
 285 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 234
  
 196
  
 86
Your Opinion
Previous poll results: Who's your favorite biologist?