It could be argued that the shift in political attitudes towards inflation was, ultimately, the only change that really mattered. We could also argue, reasonably, that the major changes in New Zealand’s monetary policy came with decisions to float the exchange rate and commit to market funding of the Government’s fiscal deficits. To accept those arguments, however, would miss some important points.
Among frequently mentioned disadvantages of the euro adoption belong the ongoing process of catching up with EU levels, the insufficiently synchronised business cycles and the loss of the exchange rate stabiliser. Along with this, we get the common monetary policy which is doubtful to fit to all, especially to a country with structural changes still ahead.