Can NAFTA be a Stepping Stone to Monetary Integration in North America?
Author InfoDominick Salvatore 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. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
