4 Comments

If Croatia were to adopt the Euro today, prices in Croatia would go up by ~21% since the Croatian Kuna is is undervalued in terms of PPP by that amount relative to the Euro. The situation will be worse in Jan 2023 since the Euro is collapsing due to the boomerang effects of their anti-Russia sanctions.

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The problem with the Euro isn't the single currency with the eurozone. In many respects it does exactly what it advertises reduces costs of doing business between countries. However, the issue of the Eurozone is that it turned each nation within it into a currency users and that detracts from the ability of each nation to respond to crisis. Now, if the Eurozone took on some basic principles of operations they could totally eliminated this feature.

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While I agree with the bulk of what you wrote here, it misses the essence of the issue. A country who are a fiat currency issuer are only limited in their spending by inflation and availability of real resources. Joining into a currency collective will remove the immense power that comes with being a fiat currency creator. I highly suggest reading "The Deficit Myth," by Stephanie Kelton. It goes into great detail regarding how macroeconomics work, in easy to understand layman's terms.

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I have read that already but I might pick it up again. Thank you, I appreciate the feedback a lot.

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