IntroductionAn optimal monetary union would be a region that benefits economically from a shared economy. According to Mundell, the four criteria for a successful monetary union are labor mobility, openness, a risk-sharing system and similar economic cycles. In today's society, global markets are increasingly linked and exchange goods and services. Having a single currency would facilitate the integration of markets and allow even more trade. Several regions of the world are considering forming a monetary union, with the Eurozone already in place. South America, particularly Chile, could benefit from the globalization and price stability created by a monetary union. Two factors have contributed to the trend towards monetary union: globalization and price stability (Andreea). MERCOSUR is an economic agreement with many South American countries and seeks to implement a monetary union called “gaucho” (Viale). CIA Global Briefing Book I created this table to get a simple comparison of Chile's neighboring countries. Analysis MERCOSUR's economies are driven by agriculture and exports (Viale). Brazil, which has the strongest economy, would be the anchor country in the event of an economic shock (Viale). According to the CIA book World Fact, Chile is in an advanced stage of demographic transition and has become more economically attractive since it adopted democracy in 1990. The country enjoys a high level of trade exterior and a reputation for solid financial intuitions. They would adapt to the opening and similar economic cycles of other MERCOSUR countries. Like the Eurozone, Chile would be part of the MERCOSUR common market, which would open its borders to the mobility of labor and capital (Viale). To be fully integrated...... middle of paper ...... will need to work harder to operate within the common goals of forming a monetary union.References.Andreea, Teică Ramona. “Economic and Monetary Union – an optimal monetary area? Journal of Young Economists / Revista Tinerilor Economisti 10.20 (2013): 85-93.Business Source Complete. Internet. April 29, 2014. Central Intelligence Agency. Central Intelligence Agency, nd Web. April 30, 2014..Rose, Andrew K. and Charles Engel. “Monetary unions and international integration”. Journal Of Money, Credit & Banking (Ohio State University Press) 34.4 (2002): 1067-1087. Commercial source completed. Internet. April 29, 2014. Viale, Ariel M., et al. “Calculate and test a stable common currency for the Mercosur countries.” Journal of Applied Economics 11.1 (2008): 193-220. BusinessSource finished. Internet. April 29. 2014.