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North American Currency Union: Friend or Foe
This paper will look at North American dollarization from the perspective of Canadian public policy. On the surface, it seems as though the dollarization of North America may be an example of good economic and financial policy not only as a competitive response to the euro, but because of the existing patterns of trade in NAFTA. Beneath the surface, however, there are many reasons indicating that it is very unlikely to come to light, at least in the short term. In contrast to Europe, which has committed to extensive political cooperation throughout the post-war period and unlike South America which has relatively little to lose in any case the US and Canada have neither history or intentions of partnering up on monetary policy or other sensitive politico-economic issues. 13 pgs. 13 f/c. 6b.
