Definition
- Economic and monetary union
- An economic and monetary union is a common market whose members also coordinate monetary and fiscal policy, often sharing one currency.
Example
Can you think of an example of economic and monetary union?
The countries of the euro area share one currency, the European Central Bank sets one interest rate for all of them, and their governments have agreed common rules limiting budget deficits and debt.
Test yourself
Can you name the four stages of economic integration?