International economics

Table of Contents

1. Topic pack - International economics - introduction
2. Section 3.1 International trade (notes)
3. Section 3.1 International trade (questions)
4. Section 3.1 International trade - simulations and activities
5. Section 3.2 Exchange rates (notes)
6. Section 3.2 Exchange rates - questions
7. Section 3.2 Exchange rates - simulations and activities
8. Section 3.3 Balance of payments - notes
9. Section 3.3 Balance of payments - questions
10. Section 3.4 Economic integration - notes
    1. Economic integration - introduction
    2. Where does trade occur?
    3. Stages of economic integration
    4. Trade blocs
    5. The effects of trade blocs
    6. Obstacles to achieving integration
    7. Monetary union
    8. Advantages & disadvantages of single currencies
11. Section 3.4 Economic integration - questions
12. Section 3.5 Terms of trade - notes
13. Section 3.5 Terms of trade - questions
14. Print View

Monetary union

A monetary union is a common market with a common/single currency and a common central bank. A single currency means that there cannot be separate national monetary policies within member countries, but requires the formation of a single central bank to take policy decisions on issues, such as the money supply and interest rates.

A significant example of monetary union was the introduction of the Euro in the European Union in 1999, with the full changeover to notes and coins taking place in January 2001. The members of the Eurozone are shown below.

The common central bank for the Eurozone is the European Central Bank.