The Merit of a North American Monetary Union

Herbert G. Grubel

in The Dollarization Debate

Published in print May 2003 | ISBN: 9780195155358
Published online November 2003 | e-ISBN: 9780199832989 | DOI:
The Merit of a North American Monetary Union

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This chapter examines the benefits and costs of a common currency for Canada, the United States, and Mexico. It is argued that the experience of the European Monetary Union and countries such as Argentina show that labour market flexibility will increase as exchange rate adjustments are no longer available to absorb the consequences of rigidities. Canada and Mexico should take the lead in demanding the creation of a North American monetary union.

Keywords: United States; Canada; Mexico; common currency; monetary union

Chapter.  9721 words.  Illustrated.

Subjects: International Economics

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