Monetary Union – One Money! 💶

Definition: A group of countries that share a Common Currency and a Central Bank.

Example: Eurozone.

• 19 countries (France, Germany, Italy, etc.) use the Euro (€).
• They have one boss: European Central Bank (ECB) in Frankfurt.
• France cannot print its own money anymore.

Advantages:

1. No Exchange Rate Risk: Business is easy. No need to convert Francs to Marks.
2. Price Transparency: You can compare prices easily across countries.
3. Stability: The Euro is stronger than the Greek Drachma.

Disadvantages:

1. Loss of Control: If Greece has a crisis, it cannot devalue its currency to recover. It has to beg the ECB. (This happened in 2010).

Quiz Time! 🎯

💡 Final Wisdom: "One Money, One Market. But also... One Problem becomes Everyone's Problem!" 💶🔗

Next up: Customs & Monetary Union - Mixing the models! 🍹