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sheila sheila
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Why do countries who are members of a currency union have difficulty recovering from a recession?
Textbook 

Macroeconomics


Edition: 3rd
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whtsi_ep3whtsi_ep3
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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.

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