A Monetary Union is an agreement between two or more countries to share a common currency and coordinate their monetary policies. This arrangement aims to facilitate trade and investment by eliminating exchange rate fluctuations and reducing transaction costs. A well-known example of a monetary union is the Eurozone, where member countries use the euro as their official currency. In a monetary union, a central authority, such as a central bank, typically manages the shared currency and sets interest rates. Member countries may also agree on fiscal policies to ensure economic stability and prevent excessive debt. This cooperation can enhance economic integration and promote growth among participating nations.