How Does the Euro Work?
A euro you hold in one member country is a euro in another; there is no currency counter at the border.
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1.What happens to exchange rates between members when countries share one money?
A euro you hold in one member country is a euro in another; there is no currency counter at the border.
2.Who sets the key interest rate for the euro area?
It sets monetary policy for the whole euro area; national central banks typically carry it out (ECB).
3.Who decides how much a government spends and taxes in the euro area?
Euro area governments must submit annual draft budgetary plans (Stability and Growth Pact).
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Sources (6)
- European Central Bank, The euro (Einfuehrungsseite)
- European Central Bank, Monetary policy (Einfuehrung)
- European Central Bank, Press release 31.12.1998: Determination of the euro conversion rates
- European Commission, Stability and Growth Pact
- Federal Reserve Board, Why does the Federal Reserve aim for inflation of 2 percent?
- Eigene Berechnung (Python/
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