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, reduce exchange rate risks, and promote economic stability among member nations. A well-known example of a monetary union is the Eurozone, where countries like Germany, France, and Italy use the euro as their official currency. In a monetary union, member countries typically give up some control over their individual monetary policies to a central authority, such as a central bank. This central authority manages the shared currency and sets interest rates, ensuring that the economic interests of all member states are considered.