Harmonised monetary and fiscal policies is a feature of

Step 1: Analyze the question The question asks which stage of regional economic integration involves harmonised (coordinated) monetary and fiscal policies.

Step 2: The concept – stages of economic integration From the loosest to the deepest form:

1. Free Trade Area: Members remove tariffs and trade barriers among themselves, but each keeps its own tariffs against non-members (e.g. AfCFTA).
2. Customs Union: A free trade area plus a common external tariff against non-members.
3. Common Market: A customs union plus free movement of factors of production (labour and capital) among members (e.g. ECOWAS aims at this).
4. Economic Union: A common market plus harmonised monetary and fiscal policies, such as a common currency, a central bank, and coordinated taxation and government spending (e.g. the European Union, and the WAEMU/UEMOA with the CFA franc).
5. Political Union (the final stage): Full integration under a single government.

Step 3: Match the feature to the stage

• Free trade area: only removal of trade barriers, so it does not fit.
• Customs union: common external tariff, so it does not fit.
• Common market: free movement of labour and capital, so it does not fit.
• Economic union: harmonisation of monetary and fiscal policies, so it fits.

Step 4: Answer The correct option is B. an economic union.

Tip: Remember the ladder "F-C-C-E-P": Free trade area → Customs union → Common market → Economic union → Political union. Each step adds one feature:

• tariffs removed
• common external tariff
• free factor movement
• common policies (monetary and fiscal)
• one government