Thank you for your replies. One thing that I know for sure is that she does not show dominance to me or my wife. I never let her go up the stairs before me, never let her enter a room before me, never let her on furniture (well sometimes but on my terms) she doesn't eat until we're done eating and I make her do simple obedience tricks for food, bones or anything else. So, on the bright side, her problem is only with other dogs, which, from what I understand, is easily solved by more socializing.
Last night I tried something different before I went on a walk with Mona. I did a quick training session emphasising the 'watch me' command, I had her sit and walked around her and she kept eye contact (we've practiced it before). When she started getting it everytime, I praised her, grabbed the leash and took her for a walk - as a 'jackpot' reward. I think it helped me get her attention better while we were walking. Also, when we were walking I saw another dog approach, I then payed close attention to Mona. I saw her tighten up, put her ears forward, chest out and started pulling so I calmly petted her head and stood in front of her - she was trying to dash out but I tightened up the leash & wouldn't let her, after a few seconds she noticibly calmed down and peeked out from behind me to check out the dog and let him pass - the dog & his owner were about 15 feet away. I was pretty surprised, usually she would growl & pull out of control. So not knowing any better I will call that progress
@Elubas thank you for the recommendation, saw some good reviews about "Culture Clash", I'll pick it up from Barnes & Noble after work today, it's just the type of reading I need.