Amero

Contents Overview Benefits from a Monetary Union Implications {text:list-item} {text:list-item} Where the NAFTA Countries Stand? The United States Canada Mexico Alternatives to the Amero Adopting the Amero {text:list-item} {text:list-item} {text:list-item} Conclusion The North American monetary union is a study that was stimulated since the successful launch of the Euro, formally proposed by Canadian Herbet G. Grubel in 1999, this study pretends to demonstrate that a monetary union between Canada, United States, and Mexico could become as successful and economic stimulant as the Euro. Under the proposed plan, the tentative name of the common currency is the “amero”. The recent crisis, the arousal of the European Monetary Union and the euro a few years ago, has also focused attention on the possibility of sharing a common currency for other economically integrating countries which is the case of US, Canada and Mexico. There is a lot of speculation about this Union. There are debates about political and cultural sovereignty for each country. Other reasons behind It, is the US dollar losing power precisely against the euro, and the prominent China economy blowing in the lasts years. Some people say it would be used as a mechanism of defense especially by the US. A publication on The Boston Globe recently title a story, “_The Amero Conspirancy_”, there are videos all over the web saying all kinds of different stories. This research paper examines the idea of a tentative monetary union in North America. Specific criteria for the single currency for North America are discussed, the benefits of a monetary union, its downsides, where each of the NAFTA countries stand at the proposed monetary union, which are another alternatives and how the new currency would be adopted. Benefits from a Monetary Union The use of a single currency eliminates some transaction costs, increase economic...