If America switch its U.S Dollar to the Euro, who will control the money supply?

Question

I'm all for the Euro, this way, the U.S government can't increases the money supply without hardship due to European monetary policy. Milton Friedman once wrote, "Inflations is taxation without legislation." If we switch to the Euro, the money supply will stay constant and inflation will be stable. 10 years ago, I remember 5 dollars could buy my sister and me two adult meals; now you cannot even buy one meal for that same amount. Maybe a snack.

Again, if America switch to the Euro, who will have the power to control the money supply and who will enforce monetary policy?

Answer 1

What are you smoking? First of all, the US price levels have changed little in the past 10 years. It is certainly not true that food is twice as expensive -- you can buy two adult meals for $5 now, just as you could then -- if you're talking about cheap fast food or frozen dinners in both cases. My food and just about everything else is substantially cheaper now, because ten years ago I lived in California, now I live in Texas. Technically the price level has increased about 25% in the past ten years, but as many things are cheaper now as are more expensive.

Second, there's no reason to expect a Euro money supply to be constant. European monetary authorities do all the same things the US authorities do, and Europe experiences the virtually the same amount of inflation as the US, despite the fact that they have less economic growth.

Third, the US isn't going to switch to the Euro under any circumstance -- that's a silly proposition altogether.

Answer 2

In Europe we have still centrals banks [like FED] in every countries weather they are in euro area or not [13 of 27 EU countries adopted euro so far].
And we have European Central Bank EBC which is responsible together with national centrals banks [NCBs] for monetary policy in euro area.
Thus if US adopt euro your money supply will be up to FED and EBC. The European monetary policy has to be compliant with Treaty of EU, that inflation shall be about 2%, so you can enjoy lower growth of meals and snacks prices, but forget about 4% GDP growth as well.

Answer 3

So the US joins the EU-George and Milton both come back to life. We can not take care of what we have. Let Europe run it?