❖ Monetary union involves
Monetary union
❖ This exists when member states
of a common market adopt a
single currency and thus a
common central bank that
oversees monetary policy.
❖ E.g The EuroZone, where 17
member states use the euro, as
there currency.
the irrevocable fixation of
the exchange rates of the
national currencies existing
before the formation of a
monetary union
❖ A monetary union is
accompanied by setting up
a single monetary policy
and establishing a single
central bank or by making
the already existing
national central banks the
integrative units of a
common central banking
system