Arguments For and Against a Monetary Union for North America

Exchange rate regimes are in the news following the economic difficulties experienced in Argentina and Turkey, and the continuing drama of the Euro. The choice between fixed or floating exchange rate regimes has been the source of debate for many years, with many high-profile collapses of pegged exchange systems. However, there are also many success stories where fixed exchange rates have brought calm and stability to economies. This article is a practical discussion of the pros and cons of a monetary union, largely from the Canadian perspective.