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What is meant by Monetary Union?
When people pronounce the word ‘currency’, there are few basics hidden in it.
‘Monetary Union’ also known as the ‘Currency Union’, is a term used when two or more states share the same currency. The currency shared does not have to have any necessary integration between them. It’s a kind of trade bloc where they can certainly use it in their own specific domains without sharing their market.
How many types of Monetary Unions Exist?
There are mainly three types of Monetary Union:
Here the foreign currency adapted has got a unilateral domain. Unilateral basically means that only one party undertakes the obligations. It’s only one-sided.
The foreign currency is adopted by the undertaking of both the parties and more which is known as multilateral agreement.
Here, many countries establish their currency with some common monetary policy and issuing authorities which guard the common currency establishment.
What are the traits involved?
Advantages of Monetary Union
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