Distinguish between 'economic union' and 'monetary union'.

Economic union is created when countries enter into an economic agreement to remove barriers to trade and adopt common economic policies. An example is the European Union (EU). Monetary union is a group of countries that share a single money. When two or more countries share a common currency or decide to peg their exchange rates in order to keep the value of their currency at a certain level, it is called a monetary union. A monetary union is established through a currency-related trade pact. The Economic and Monetary Union of the European Union with the Euro for the Euro-zone members is an example of a monetary union.