"As interest in the formation of a monetary union in the region grows, naturally questions are being asked about the conditions under which a monetary union would be desirable and viable, the desirable form and extent of such a monetary union, the effects and implications of a monetary union for independence in national policy-making, and about the implications of economic disparities among member countries, among other things. In order to address these issues, this study will review the general literature on monetary integration, present the relevant empirical and historical background to monetary integration in Southern Africa. Examine alternative models of monetary integration, their suitability for the Southern Africa region, and the stages involved in reaching the ultimate goals. Analyze the costs and benefits of monetary union under alternative regimes to Malawi, paying attention to trade policy, fiscal policy, and the effects of exchange rate alignment."