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Monetary Policy arguments

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Briefly outline what you consider to be the important economic arguments for and against Canada pursuing a North American monetary union (NAMU) with the United States and possibly Mexico.

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Generally, the potential gains would be seen microeconomically and the potential losses macroeconomically. The solution goes into arguments for and against and provides a comprehensive answer to the problem. Both economical and financial arguments are provided in the solution. The attached documents is approximately one page long and provides a number of compelling arguments. Overall, a great response to the question being asked.

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ECONOMICS MIDTERM Q 12

Briefly outline what you consider to be the important economic arguments for and against Canada pursuing a North American monetary union (NAMU) with the United States and possibly Mexico.

Generally, the potential gains would be seen microeconomically and the potential losses macroeconomically.

AGAINST

(Political)

Often merging of currencies is seen as a first step towards a political union, but that is not the case in North America - the advantages then must all be found economically and must be in effect in the long run.

Separation of Quebec would be made easier since ...

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