When a country has monetary autonomy, it can:
A) conduct monetary policy independently of all other countries.
B) conduct monetary policy only in coordination with all other countries.
C) conduct monetary policy only in cooperation with its reserve currency country (the country to which it fixes its currency).
D) print money without affecting inflation.

Question

Quizplus · Accepted Answer

Monetary autonomy refers to the ability of a country to conduct its own monetary policy independent of other countries. This means that the country can adjust its interest rates, control the money supply, and influence inflation rates without coordinating with other countries.

When a Country Has Monetary Autonomy, It Can