Monetary Union

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Monetary Union

A group of independent countries that share a single currency. That is, these countries, while maintaining sovereignty on economic policy, taxes, and similar issues, have transferred responsibility for a monetary policy to a central bank shared by participating members. The most famous monetary union is the eurozone, though another example is the West African Monetary Union. A monetary union is also called a currency union.
References in periodicals archive ?
The success or failure of monetary unions has invariably hinged on the political determination and the political ability to adjust to the collective requirements of a monetary union.
The report stands against the prevailing skepticism about the desirability of pursuing the objective of monetary unions in Africa, and hence the need for fiscal convergence and multilateral surveillance among regional economic communities member countries.
Monetary unions are not one-size-fits-all arrangements.
Regional monetary unions widened in scope throughout history, and ended up following a political and economic course during the 19th century, one fortifying the solidarity of different peoples of adjacent countries.
The UAE's decision to opt out of the planned GCC monetary union is a fundamental setback to the planned Gulf single currency, and illustrates a deep concern at the heart of all monetary unions - that of ceding sovereignty over economic and monetary policy.
The primary problem with the Euro and currencies of other monetary unions is that they still must co-exist within the international multi-currency system itself where the value of those common currencies must still fluctuate in value against each other.
While we suffer through the aftermath of the subprime crisis, its effects on financial markets, and potentially the largest economic downturn since the Great Depression, it is difficult to imagine greater monetary integration in the form of new monetary unions as part of the solution--for reasons that I will outline below.
dollar to the completion of a monetary union took place, examine the different theoretical approaches to the formation of monetary unions such as the market, the institutional, and the shock-therapy approach.
Euro-MP Chris Huhne, chairman of The City in Europe and council member of Britain in Europe, said, "The IoD is oblivious to the fact that there have been many successful monetary unions - including the Gold Standard, the British-Irish Monetary Union and the Belgium-Luxembourg monetary union - in which there was no political superstructure whatsoever.
Monetary unions have been a recurring element in European history, driven by the need to overcome obstacles to trade caused by the fragmentation of political authority.
existing monetary unions, including the union of Belgium
I would therefore draw three conclusions: First, that Eichengreen is skating on thin ice when he suggests in a fairly unqualified way that currency boards lack credibility, but monetary unions have it.