Small country benefits from monetary union

The paper focuses on the discussion of a neglected benefit of hard fixing, which is that small countries enjoy better monetary policy. The improved monetary policy arises because the large institutions to which they surrender their monetary sovereignty are more likely to be free from political influences and partly because they have more financial and human resources to design and execute the best monetary policy. Errors made by the large central banks have less impact on the member countries they serve because of the dominance of intra-union trade and capital flows.