Several countries have opted to join currency unions


Question: Several countries have opted to join currency unions. Examples include those in the Euro area, the CFA franc union in West Africa, and the Caribbean currency union. This involves sacrificing the domestic currency in favor of using a single currency unit in multiple countries. Assuming that once a country joins a currency union, it will not leave, do these countries face the policy trilemma discussed in the text? Explain.

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International Economics: Several countries have opted to join currency unions
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