What policy do member countries of the Euro system agree to share?

Member countries of the Euro system agree to share a common monetary policy, primarily managed by the European Central Bank (ECB). This means that they adhere to the same set of policies regarding interest rates and money supply, which are aimed at maintaining price stability across the eurozone. The rationale behind this shared policy is to ensure economic coordination and stability among the countries that have adopted the euro as their currency.

While fiscal policies can vary significantly between member states, the commitment to a common monetary policy helps to avoid negative spillover effects that might arise from independent monetary policies. This is especially important in a currency union, where member countries do not have the ability to devalue their own currency or set their own interest rates to respond to individual economic conditions. The adoption of the euro further solidifies this cooperation, as it requires member countries to align their monetary settings to maintain the euro's value.

In summary, the agreement to share a common monetary policy is foundational for the functioning of the Euro system, facilitating economic stability and integration among member countries.