Can NAFTA be a Stepping Stone to Monetary Integration in North America?

Dominick Salvatore

Economie Internationale, 2006, issue 107, 135-148

Abstract: Monetary integration refers to the sharing by a group of nations a common currency and central bank. It is most unlikely that the United States will accept a common currency within NAFTA (even if it were the dollar) and a common central bank. With NAFTA not being an optimum currency area, there is little need and benefit for Canada and Mexico to unilaterally dollarize. This, together with strong political opposition to dollarization, leaves little chance that Canada and Mexico will dollarize or even fix their exchange rate vis-à-vis the dollar in the foreseeable future.

Keywords: Common currency; dollarization; monetary integration; NAFTA; optimum currency area; monetary block (search for similar items in EconPapers)
JEL-codes: F36 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cepii.fr/IE/rev107/ei107f.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiei:2006-3tf

Access Statistics for this article

More articles in Economie Internationale from CEPII research center Contact information at EDIRC.
Bibliographic data for series maintained by ().