Compilation of financial accounts and balance sheets within monetary and economic unions

This chapter describes the compilation of financial accounts and balance sheets within monetary and economic unions. It defines three different forms of regional arrangements: monetary and currency unions, economic unions, and customs unions.216 A monetary union is defined as a situation in which there is the presence of a single monetary policy among economies, established by an intergovernmental legal agreement (e.g. a treaty). A currency union is a monetary union in which national currencies have been replaced by a common currency. Economic unions harmonize certain economic policies to foster greater economic integration. Customs unions have common tariff and other trade policies with non-member economies. Section B deals with monetary and currency unions, section C with economic unions and section D with customs arrangements.

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