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Monetary unions Joining a monetary union (such as the EMU or EURO) imposes constraints on the UK government's macroeconomic policy options. A monetary union involves a group of nations accepting a single currency as means of exchange in their economies. By joining it gives up its power to maintain stability in its own financial markets to (in the cases mentioned above) the European Central Bank (ECB). This means that although it would have members on the council of the ECB who would vote on any policies and actions undertaken by the ECB that it would not have independence and would have to follow any policies seen by the ECB to benefit most of its member countries, even if it does not benefit the UK itself. Once joining a monetary union the UK would lose its power to 'control' its economy by foreign exchange operations, i.e. the devaluation of the exchange rate....

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