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Collection: Faculty Working Papers  
Title Nafta toward a Common Currency: An Economic Feasibility Study
Author Hugger, Kelly
Type of Resource text
Digital Origin born digital
Date Created 2008-08
Abstract The recent emergence of the Euro, combined with the completion of a decade of North American Free Trade Agreement (NAFTA) has sparked interest in adopting a common currency for North America. This study examines the likelihood that Canada, Mexico, and the United States will adopt a common currency under fixed exchange rate regimes. The benefits and costs of a common currency are explored using the theory of optimum currency areas (OCA). Empirical research focuses on several variables including intra-regional and intra-industry trade, trade openness, gross domestic product, inflation rates, interest rates, economic growth rates, business cycle synchronization, factor mobility, fiscal policy and monetary policy coordination. The analysis also presents a comparative analysis of NAFTA with Economic and Monetary Union (EMU) nations on different economic criteria. Finally, correlation and regression analysis further explores the likelihood that members of NAFTA will economically integrate. Though this research concludes that it is economically feasible for NAFTA members to move towards a common currency, this venture depends on the political readiness of the nations.
Keywords NAFTA
currency area
exchange rate
Rights Statement Copyright restrictions apply. Contact the author for permission to publish.
Note (admin) Acquired as PDF from Colorado College Department of Economics and Business. Converted to PDF/A1.b using Adobe Acrobat Professional.
Publisher Colorado College
Place of Publication Colorado Springs, Colorado
Local Identifier 2008-06
Handle http://hdl.handle.net/10176/coccc:2609
Attached Files
Name Description MIMEType Size Downloads
NaftaToward.pdf   master application/pdf 943.09KB 0

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Created: Wed, 13 Jan 2010, 11:29:06 MST by Christine Ashlock (admin) . Detailed History