The loss of the sovereign interest rate and exchange rate instruments is the main potential cost of joining a monetary union since it becomes more difficult to adjust swiftly to shocks. In the case of demand shocks that affect all countries more or less equally (symmetric shocks), the loss of...

The monetary policy decision, as any other decision, is the product of a procedure assembling a lot of primary information, but also what type of other ingredients contribute finally to a certain monetary policy decision.