North American monetary union

One argument is that it would save up to $3 billion in currency transactions.{{cite journal|author=W.B.P. Robson and D.E.W. Laidler|year=2002|title=No Small Change: The Awkward Economics and Politics of North American Monetary Integration| journal=C.D. Howe Institute Commentary: The Border Papers, Toronto, Ontario|publisher=C.D. Howe Institute|volume=29}} The same authors also stated that Canada's GDP could rise by up to 33% in a 20-year period given the adoption of a single currency.

The idea of a common currency has historically been unpopular in English-speaking Canada, in comparison to the French-speaking province of Quebec where it has received more support. A 2001 opinion poll found that in Quebec over 50% of respondents favored the idea of a shared currency, while in the rest of Canada a majority of respondents opposed the idea.{{cite journal|author=Leger Marketing Group|title=A Study of How Canadians Perceive Canada-US relations|date=August 30, 2001}}

Lower levels of currency cooperation have been practiced in the Americas before. Some nations such as Argentina and Brazil have at times tied their currency to the U.S. dollar.{{cite web |url=https://corporatefinanceinstitute.com/resources/knowledge/finance/brazilian-real-brl/#:~:text=Brazil%20pegged%20its%20currency%20to,foreign%20exchange%20symbol%20is%20BRL. |title=Brazilian Real - Overview, History, and Denominations |work=CFI |access-date=20 March 2021 }}{{cite web |url=https://www.frbsf.org/economic-research/publications/economic-letter/2002/august/argentina-currency-crisis-lessons-for-asia/#:~:text=Argentina%20maintained%20a%20currency%20board,one%20to%20the%20U.S.%20dollar. |title=Argentina's Currency Crisis: Lessons for Asia |work=Federal Reserve Bank of San Francisco |date=23 August 2002 |access-date=20 March 2021 }} Some of them, such as Aruba, The Bahamas, Barbados, and the Organisation of the Eastern Caribbean, still do.{{cite web |url=https://www.sapling.com/4675892/what-currencies-pegged-dollar |title=What Currencies Are Pegged to the Dollar? |access-date=20 March 2020 |work=Sapling }}{{cite web |url=https://www.investopedia.com/terms/x/xcd-eastern-caribbean-dollar.asp#:~:text=The%20currency%20is%20managed%20by,the%20US%20Dollar%20since%201976. |title=XCD (Eastern Caribbean Dollar) |date=29 December 2020 |access-date=20 March 2021 |work=Investopedia }}{{cite web |url=https://www1.oanda.com/currency/iso-currency-codes/XCD |title=East Caribbean Dollar |work=OANDA |access-date=20 March 2021 }}

The U.S. dollar is officially accepted alongside local currencies in El Salvador (since 2001), Costa Rica, Nicaragua, Peru, Honduras, Panama, Bermuda and Barbados, and in practice two of these countries (El Salvador and Panama) are fully dollarized.{{cite web |url=https://ticotimes.net/2021/01/04/el-salvador-marks-20-years-of-dollarization-with-weak-economic-impulse#:~:text=El%20Salvador%20marks%2020%20years%20of%20dollarization%20with%20weak%20economic%20impulse,-Carlos%20Mario%20MARQUEZ&text=El%20Salvador%20is%20marking,characterized%20by%20high%20public%20debt. |title=El Salvador marks 20 years of dollarization with weak economic impulse |work=The Tico Times |date=4 January 2021 |access-date=20 March 2021}}{{cite web |url=https://www.elibrary.imf.org/view/IMF071/12617-9781616353780/12617-9781616353780/ch07.xml?redirect=true |title=Chapter 7: Official Dollarization in El Salvador as an Alternative Monetary Framework |date=July 2012 |access-date=20 March 2021 |work=IMF eLibrary }}{{cite web |url=https://www.cato.org/sites/cato.org/files/serials/files/cato-journal/2005/1/cj25n1-14.pdf |title=Financial Integration and Dollarization: The Case of Panama |access-date=20 March 2021 |work=Cato Journal }}{{cite web |url=https://www.imf.org/external/pubs/ft/issues/issues24/ |title=Full Dollarization The Pros and Cons |date=2000 |access-date=20 March 2021 |work=International Monetary Fund }}{{cite web |url=https://core.ac.uk/download/pdf/6371283.pdf |title=Dollarization Explained |date=2008 |work=Federal Reserve |access-date=20 March 2021}} In 2000, Ecuador officially adopted the U.S. dollar as its sole currency.{{cite web |url=https://peopleplacesandthoughts.com/home/2019/5/24/ecuadors-one-and-only-official-currency-is-the-us-dollar#:~:text=Ecuador%20began%20using%20the%20US,amounts%20less%20than%20one%20dollar. |title=Ecuador's one and only official currency is the US Dollar |work=People Places and Thoughts |date=24 May 2019 |access-date=20 March 2021 }} In a few areas of Canada, the U.S. dollar can be accepted as currency alongside the Canadian Dollar, particularly in areas near border crossings.{{cite web |url=https://www.tripsavvy.com/is-us-currency-accepted-in-canada-1481853#:~:text=The%20good%20news%20is%20that,probably%20give%20a%20decent%20exchange. |title=Is U.S. Currency Accepted in Canada? |work=TripSavvy |date=11 June 2020 |access-date=20 March 2021 }} An example of this effect is Niagara Falls, Ontario,{{cite web |url=https://www.toniagara.com/blog/can-you-use-us-dollars-in-niagara-falls-canada/ |title=Can You Use US Dollars in Niagara Falls Canada? |work=ToNiagara |date=27 December 2019 |access-date=20 March 2021 }} with large numbers of U.S. tourists (businesses still may not accept U.S. currency depending on their policy). The same is also true for the Canadian Dollar in many U.S. cities near the United States-Canada border.{{citation needed|date=June 2012}}

{{see also|Optimum currency area}}

Opposition to a North American monetary union exists high up in the governments on both sides of the Canada–United States border. Herbert Grubel, the first proponent of the amero, admits that American officials show no interest in the topic. He concedes that "there wouldn't be very much benefit for the United States" in an amero. Likewise, the Canadian Department of Finance strongly opposes the creation of a common currency with the United States, citing the loss of economic sovereignty. In briefing documents to former Minister of Finance Jim Flaherty, finance officials concluded:{{Cite news|last=Chase|first=Steven|title=Consider a continental currency: Jarislowsky|newspaper=The Globe and Mail|date=2007-11-22|access-date=2007-11-28|url=https://www.theglobeandmail.com/servlet/story/RTGAM.20071122.wrdollar1122/BNStory/Front|archive-url=https://archive.today/20071019223711/http://www.theglobeandmail.com/servlet/story/RTGAM.20071122.wrdollar1122/BNStory/Front|url-status=dead|archive-date=2007-10-19}}

A North American common currency would undoubtedly mean for Canada the adoption of the U.S. dollar and U.S. monetary policy. Canada would have to give up its control of domestic inflation and interest rates.

From the point of view of the Canadian and Mexican governments, a major obstacle to the creation of a unified currency is the sheer dominance of the United States in any such union.

A paper from University of California, Santa Barbara puts forward the idea that the United States simply has too many advantages from the status quo to move toward a single currency.{{cite journal|url= http://repositories.cdlib.org/gis/29|title=North American Monetary Union: A United States Perspective|author=Benjamin J. Cohen |year=2004|publisher=Global & International Studies Program|volume=Paper 29|access-date=2007-09-05}} The United States dollar already acts as a global currency, meaning any transition to a 'new' currency would risk compromising this position and could cause a shift toward the euro or yen.{{Citation needed|date=July 2009}} The U.S. dollar is currently being used in over half of all the world's exports, double the total United States foreign trade. The adoption of the amero could threaten the seigniorage that the U.S. currently gains from its dollar. While seignorage would still be gained from the amero, this would be shared among the Bank of Canada, the Federal Reserve, and the Banco de México. Therefore, even if the amero were used just as much as the U.S. dollar, the advantages would be shared among two or more countries, and not exclusively held by the United States.

Several problems could arise in regards to macroeconomic management. By submitting to a common currency, the countries would lose considerable autonomy in the management of the currency itself, including the setting of interest rates. Amongst the three potential participants, there is considerable difference in policy which would have to be reconciled.

Debt is a factor affecting currency prices. As of 2010, the debt of the United States continues to increase, while the debt of the Canadian federal government is being reduced.[http://www.currency-converter.io/show?amount=1&from=USD&to=CAD&view=5years USD/CAD currency rates evolution over last 5 years] {{webarchive|url=https://web.archive.org/web/20150208190107/http://www.currency-converter.io/show?amount=1&from=USD&to=CAD&view=5years |date=2015-02-08 }} This is a clear advantage for Canadians and it would not be reflected if the currencies were to merge. The importance of commodities also factors into this equation.

A concern with any unified North American currency is the differing economic situations between each country. The Eurozone comprises broadly similar service-based economies[http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-30-08-410/EN/KS-30-08-410-EN.PDF European Economic Statistics] {{webarchive|url=https://web.archive.org/web/20081030075229/http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-30-08-410/EN/KS-30-08-410-EN.PDF |date=2008-10-30 }}, Fig.2.2.2, Eurostat Statistical Books based on high public spending (compared to the United States), high taxes and wealth being created by the sale of goods and services. North America on the other hand has three distinct economies; one based mainly on manufacturing, industry and agriculture with a demand for free trade (Mexico), another based on services such as retail, with higher taxes and low public spending (United States), and a third based on services with higher taxes and higher public spending, with a large sector in primary goods such as oil, mining and lumber (Canada).{{Citation needed|date=May 2008}}

Some observers blamed the Eurozone crisis partly on a lack of effective fiscal union. The Budget of the European Union is relatively small compared to the budgets of the Eurozone countries, which are set independently. Leading up to the crisis, some countries incurred more debt than the unenforced EU guidelines called for. Due to the centralized monetary union, countries experiencing problems were unable to apply local monetary policy to recover, and destabilized the currency which is also used by more economically healthy countries. The national budgets and debt levels of Canada, the United States, and Mexico, on the other hand, are also set completely independently, which could cause similar problems in a situation where monetary policy was centralized.

In contrast, the economies of the various states of the United States are strongly integrated. Internally, the U.S. also has strong fiscal federalism - all but one of the fifty states have a balanced budget amendment, and the federal budget is large compared to state budgets, resulting in effective federal stabilization of the currency and national economy.

In November 2006, Lou Dobbs alleged on his CNN program that a "North American Union" was being implemented, without the knowledge and consent of the people who would be affected by the Union.{{cite web |url= http://transcripts.cnn.com/TRANSCRIPTS/0611/29/ldt.01.html |date= November 29, 2006 |title= Lou Dobbs Tonight |website= CNN.com, Transcripts }} The episode also briefly mentioned various claims about a common currency. The report focused on uncertainty prior to Felipe Calderón taking office as President of Mexico in late 2006, but never provided any substantive evidence to support this claim. The report suggested the union would be implemented by 2010, a deadline which came and went without such a union being implemented.

In 2006, Conservative Caucus Chairman Howard Phillips, WND columnist and author Jerome Corsi, activist Phyllis Schlafly, among others, reportedly formed a coalition against a North American Union.{{cite web|url=http://www.canadafreepress.com/2006/cover121406.htm|title=Debut of the Amero|author=Judi McLeod |publisher=Canada Free Press|date=2006-12-14}} On January 22, 2007, Republican Representatives Virgil Goode of Virginia, Tom Tancredo of Colorado, Walter Jones of North Carolina, and Ron Paul of Texas were among the 43 federal lawmakers who introduced H. CON. RES. 40, a resolution advocated by the coalition, that expressed:

The sense of Congress that the United States should not engage in the construction of a North American Free Trade Agreement (NAFTA) Superhighway System or enter into a North American Union (NAU) with Mexico or Canada.

In August 2007, rumors and conspiracy theories began circulating across the Internet regarding alleged United States Treasury-issued amero coins.

The inspiration behind these rumors may have been the posting of images of medallions created by coin designer Daniel Carr. Carr, who designed the New York and Rhode Island 2001 statehood quarters, sells medals and tokens of his own design on his commercial website, "Designs Computed" (also known as "DC Coin"). Among his designs are a series of gold, silver and copper fantasy issues of amero coins ranging in denomination from one to one thousand. The medallions have the legend "Union of North America" on the back with his company's logo, a stylized "DC",{{cite web|url=http://www.designscomputed.com/coins/dc-coin_cover.htm |title=Catalog of Minted Items by Daniel Carr |publisher=Designscomputed.com |access-date=2013-12-11}} in small type.{{cite web|url=http://www.amerocurrency.com/amerophotos.html|title=Photos of notional Amero coins|access-date=2007-12-03|work=AmeroCurrency.com|archive-url=https://web.archive.org/web/20071110034140/http://www.amerocurrency.com/amerophotos.html|archive-date=2007-11-10|url-status=dead}} Concerning his amero designs, he mentions on his website:

My goal with these coins is not to endorse a Union of North America or a common Amero currency. I fully support the United States Constitution, and I would not welcome (in any form) a diminishment of its provisions. I expect that these coins will help make more people aware of the issue and the possible ramifications. I leave it up to others to decide if they are in favor of, or against a North American Union. And I encourage citizens to voice their approval or disapproval of government plans that impact them.{{cite web|url=http://www.dc-coin.com/index.asp?PageAction=VIEWCATS&Category=8|publisher=DC Coins|title=UNA Amero Pattern Coins|access-date=2007-09-25}}

Unauthorized postings of images taken from his website have been reposted widely across the Internet, often being used as supposed "proof" of the amero coinage. Notably, white nationalist and former Internet radio talk show host Hal Turner ran a full article on his website about the "amero coin", claiming to have arranged for a United States Government minted "amero" to be smuggled out of the United States Department of the Treasury by an employee of that organization.{{cite web|url=http://www.halturnershow.com/AmeroCoinArrives.html|publisher=Hal Turner Show|title=Amero Coin Arrives|access-date=2007-09-10|archive-url=https://web.archive.org/web/20070911072115/http://www.halturnershow.com/AmeroCoinArrives.html|archive-date=2007-09-11}}

Following Turner's assertions of federal minting of ameros, a web site marketing the curio coins released a statement debunking Turner's claims of a government cover up regarding Daniel Carr's amero products.{{cite web|url=http://www.amerocurrency.com/turnerexposed.html|publisher=AmeroCurrency.com|title=Response to Turner claims of U.S. Government Amero Cover Up|access-date=2007-09-11|archive-url=https://web.archive.org/web/20071110180605/http://www.amerocurrency.com/turnerexposed.html|archive-date=2007-11-10|url-status=dead}} The urban legend investigating Web site Snopes also ran a further counter to Turner's claims, stating "neither the U.S. Mint nor the U.S. Treasury has a hand in creating these 'Ameros'. These coins are merely collectibles offered to the buying public by a private company in the business of manufacturing such curiosities."{{cite web|url=http://www.snopes.com/politics/business/amero.asp|website=Snopes.com|title=Amero Uproar|access-date=2007-09-08}}

Carr's designs had been available through his website since 2005,{{cite web|url=http://www.dc-coin.com/ |title=List of archives of www.dc-coin.com |work=Wayback Machine |publisher=Internet Archive |access-date=2009-05-17 |url-status=live |archive-url=https://web.archive.org/web/20161022091141/http://www.dc-coin.com/ |archive-date=2016-10-22}} The archive has a [https://web.archive.org/web/20070804142409/http://www.designscomputed.com/coins/ 4 August 2007 copy] of Carr's coin list with the Amero near the bottom, and a [https://web.archive.org/web/20070819075335/http://www.designscomputed.com/coins/amero.html 19 August 2007 copy] of the Amero page itself. and according to a WHOIS search at Network Solutions, the domain "dc-coin.com" was registered by Daniel Carr on September 27, 2005.[http://www.networksolutions.com/whois/results.jsp?domain=dc-coin.com WHOIS domain registration information results for dc-coin.com from Network Solutions]

In October 2008, Hal Turner released a video showing an apparent 20 amero coin, with claims that shipments of the currency had been sent to China.{{cite web|url=http://video.google.com/videoplay?docid=-9084453302540783461&ei=fM_sSJffKJPuqALQ3-DwBg&q=amero&vt=lf|publisher=Youtube.com|title=Hal Turner Shows NEW Amero Currency|access-date=2008-10-09}} {{Dead link|date=September 2010|bot=H3llBot}} Yet the coin in Hal Turner's video is identical to a medallion on Daniel Carr's "dc-coin" website, listed as "UNA 2007 20 Ameros, Copper, Satin Finish".{{cite web|url=http://dc-coin.com/index.asp?PageAction=VIEWCATS&Category=8|publisher=dc-coin.com|title=UNA Ameri Pattern Coins|access-date=2008-10-18}}

On December 3, 2008, Hal Turner's blog featured what he claimed were genuine "amero bills". He displayed photographs of purported 20, 50, and 100 amero notes. Turner did not identify how he obtained the images, saying only that "once again, my sources have come through". He claimed that the "new currency is already being printed and quietly distributed around the world".{{cite web|url=http://halturnershow.blogspot.com/2008/12/urgent-new-amero-paper-currency-exposed.html|publisher=halturnershow.blogspot.com|title=New Amero Paper Currency Exposed|access-date=2008-12-09|date=2008-12-03 |author=Turner, Hal}} The web site Snopes.com suggested Turner was "beating the same tired, apocryphal drum" with his new claim.{{Failed verification|date=August 2013}} These images are art from the Flickr user aleatorysort,{{cite web|url=https://www.flickr.com/photos/8152235@N02/page2/ |title=aleatorysort (2007-05-08). aleatorysort's photostream. Uploaded on 8 May 2007. Retrieved from |date=2 May 2007 |publisher=Flicr |access-date=2013-12-11}} who created them as an artistic political commentary, and were therefore not actual currency.

{{Portal|Money}}

{{Div col|colwidth=30em}}

• List of trade blocs
• Monetary union
• North American Free Trade Agreement
• North American Union
• Security and Prosperity Partnership of North America
• Special drawing rights
• World Currency Unit
• African Monetary Union
• Canadian dollar
• East Caribbean dollar
• Eco
• Euro
• European Currency Unit
• Khaleeji
• Mexican peso
• United States dollar

{{div col end}}

{{Reflist|2}}

{{commonscat|Amero}}

• SPP in the [https://web.archive.org/web/20081207080118/http://www.spp.gov/ U.S.], [https://web.archive.org/web/20081220122409/http://www.spp-psp.gc.ca/menu-en.aspx Canada], and [https://web.archive.org/web/20081216061557/http://www.aspan.gob.mx/ Mexico]
• Pastor, Dr. Robert A., [https://www.senate.gov/~foreign/testimony/2005/PastorTestimony050609.pdf Testimony invited by the Subcommittee on the Western Hemisphere of the United States Senate Foreign Relations Committee] 9 June 2005

{{Trilateral relations of Canada, Mexico, and United States}}

Category:Currencies of North America

Category:Currency unions

Category:Conspiracy theories in the United States

Category:Proposed currencies

Category:Trilateral relations of Canada, Mexico, and the United States