Advantages and disadvantages for a country of joining a currency union, e.g. the eurozone
A currency union is a group of countries that share one currency. Joining one removes exchange rate uncertainty but also removes a country's control over its own interest rates.
Real World
During the 2010–12 Greek debt crisis, Greece could not devalue its currency to restore competitiveness because it shared the euro, forcing painful internal devaluation through wage cuts instead.
Exam Focus
Always link loss of monetary policy autonomy to a specific consequence (e.g. inability to cut rates in a recession) for full evaluation marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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