This study examines the major arguments for and against enhanced monetary integration in North America, with particular emphasis on the Canadian perspective. In this context, the question is whether the current floating rate regime should be replaced by greater fixity of exchange rates in relation to the U.S. dollar. While the choice among fixed rate systems is wide in principle, for practical purposes the Canadian debate centres on the pros and cons of monetary union. As other countries in the northern hemisphere may be reluctant to embrace monetary union, the following discussion also examines other potential candidate regimes, including currency boards and dollarization.
© 2003 Industry Canada
Arndt, Sven. “The Pros and Cons of North American Monetary Integration,” in R. Harris (ed.), North American Linkages: Opportunities and Challenges for Canada (U. of Calgary Press, 2003a).