Introduction An 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 business cycles. In today's society, world markets are increasingly intertwined and exchange goods and services. Having a single currency would facilitate market integration and allow for even more trade. Several regions around the world are considering forming a monetary union, with the Eurozone already implemented. South America, particularly Chile, could benefit from globalization and the price stability created by a monetary union. Two factors have contributed to the monetary union trend: globalization and price stability (Andreea). MERCOSUR is an economic agreement with many South American countries and is trying to implement a monetary union called “gaucho” (Avenue). Data sectionCollected from the CIA's Book of World Facts I created this table to get a simple comparison between countries neighboring Chile. AnalysisThe economies of MERCOSUR are driven by agriculture and exports (Avenue). Brazil, having the strongest economy, would be the anchor country in the event of economic shocks (Viale). According to the CIA World Fact book, Chile is in advanced stages of demographic transition and has become more economically attractive since adopting democracy in 1990. It has a high level of foreign trade and a reputation for strong financial insights . They would adapt to the similar openness and 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... mid-paper... more work will have to be done to operate according to the common goals of forming a monetary union.References.Andreea, Teică Ramona. "The Economic and Monetary Union: an optimal currency area?" Young Economists Journal / Revista Tinerilor Economisti 10.20 (2013): 85-93. Business Source Complete. Network. April 29, 2014. Central Intelligence Agency. Central Intelligence Agency, n.d. Web. April 30, 2014..Rose, Andrew K., and Charles Engel. "Currency unions and international integration". Journal Of Money, Credit & Banking (Ohio State University Press) 34.4 (2002): 1067-1087. Business origination completed. Network. 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. Business origin completed. Network. April 29. 2014.