This is where a country has complete control of their own monetary policy i.e. the ability to set their own interest rates and money supply. This is often a condition that independant states value as it allows them to react directly to national business cycle problems. For instance, if they are experiencing a downturn a cut in the base rate will inject some form of stimulus into the economy. The loss of this type of policy response freedom is one of the main restraints stopping countries like the UK from joining a currency union such as the euro.