Why is using the euro instead of a local currency such a big deal and why is the wealth of the society an argument?

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The Politicus
Jun 19, 2020 01:56 PM 0 Answers
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I think this is a question of both economics and politics, but I decided to ask it here.

There will soon be elections in Poland. There was a debate about this question: should Poland keep the złoty (our current currency) or adopt the euro? Some candidates said the złoty is the right choice because Polish society is too poor for the euro.

I wonder if this argument has any validity. To me it seems as if a parent said to a child: you should give your height in centimeters because you're not tall enough to give it in meters. It's just a unit. Of course, the ratio is variable, but my job will not have a higher value just because I say how much it's worth in euro instead of złotych.

What are the real problems with a poorer country adopting the currency of a wealthier country? I believe there is some legal catch, maybe some new obligations for a poorer country – obligations which cannot be met by the country – but from an economic point of view I don't understand it at all.

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  • June 19, 2020