A North American Monetary Union
An exploration of the idea of a monetary union in North America and its impact on the nations associated with the North American Free Trade Agreement (NAFTA).
# 100564 | 5,442 words | 14 sources | MLA | 2005 |
Published on Jan 10, 2008 in Business (International) , Economics (International) , Political Science (Fiscal Policy (economy)) , Canadian Studies (Economics and Finance)
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A single currency in NAFTA has been an issue that has become more frequent today in North America. In determining whether this is a good decision or not it is important to review the pros and cons of having a single currency. This paper analyzes what might be the impact if the nations of the North American Free Trade Agreement were to launch a monetary union policy. The paper also discusses the advantages and disadvantages for each nation and its impact on the economy. Graphs are provided where relevant.
From the Paper:"Some of the Canadian politicians like Courchene and Harris have argued that if Canada creates a monetary union with the United States it would "reduce transaction costs, that is how much it costs to make a certain trade in terms of time. These costs are incurred because of border-related paperwork and the use of two currencies that fluctuate in value against each other. A monetary union would relieve companies of these costs, reduce the paperwork and offer a more stable macro-economic environment allowing for more accurate calculation of profit margins." According to the above statements and research it is apparent that a single currency would be beneficial to MNEs in NAFTA in many different ways especially in terms of financial costs."
Sample of Sources Used:
- About: The Canadian Exchange Rate. 2005. (http://economics.about.com/cs/money/a/cadexchange_2.htm). November 10, 2005.
- Chriszt, M. (2004). Perspectives on a Potential North American Monetary Union: Economic Review. Federal Reserve Bank of Atlanta. P29.
- Citizenship. (http://www.standards.dfes.gov.uk/pdf/secondaryschemes/ks4cit11.pdf#search='disadvantages%20of%20a%20single%20currency'). November 15, 2005.
- Economic and Financial Affairs. (2004). (http://europa.eu.int/comm/economy_finance/euro/origins/origins_1_en.htm). November 14, 2005).
- European Parliament. (2004). (http://www.europarl.eu.int/parliament.do?language=EN). November 12, 2005.
Cite this Research Paper:
A North American Monetary Union (2008, January 10) Retrieved November 23, 2020, from https://www.academon.com/research-paper/a-north-american-monetary-union-100564/
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