Editorial Director
Managing Editor
  N° 107    
Issue 3 2006
Can NAFTA be a Stepping Stone to Monetary Integration in North America?
Dominick Salvatore  
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. Abstract

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Common Currency; Dollarization; Monetary Integration; NAFTA; Optimum Currency Area Keywords
F36 JEL classification
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