Please help me with 1 and 2. Thank you 1. Several countries have opted to join currency unions. Examples include those in theeuro area, the CFA franc union in West Africa, and the Caribbean currency union. Thisinvolves sacrificing the domestic currency in favor of using a single currency unit inmultiple countries. Assuming that once a country joins a currency union, it will notleave, do these countries face the policy trilemma discussed in the text? Explain. 2. During the Great Depression, the United States remained on the international goldstandard longer than other countries. This effectively meant that the United States wascommitted to maintaining a fixed exchange rate at the onset of the Great Depression.The U.S. dollar was pegged to the value of gold along with other major currencies,including the British pound, French franc, and so on. Many researchers have blamed theseverity of the Great Depression on the Federal Reserve and its failure to react toeconomic conditions in 1929 and 1930. Discuss how the policy trilemma applies to thissituation
Please help me with 1 and 2. Thank you
1. 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.
2. During the Great Depression, the United States remained on the international gold
standard longer than other countries. This effectively meant that the United States was
committed to maintaining a fixed exchange rate at the onset of the Great Depression.
The U.S. dollar was pegged to the value of gold along with other major currencies,
including the British pound, French franc, and so on. Many researchers have blamed the
severity of the Great Depression on the Federal Reserve and its failure to react to
economic conditions in 1929 and 1930. Discuss how the policy trilemma applies to this
situation
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