As a U.S. citizen, would you be willing to support a North American Dollar (US, Canada, Mexico)?

Question

A unified dollar for the U.S., Canada, and Mexico backed by silver would do much to stabilize the three economies. Mexico's economy would be elavated and the U.S. and Canada's inflation would be curbed.

It would help to curb illegal immigration from Mexico and Canada. The N.A.D. (North American Dollar) would be a great equalizer and establish a North American alliance capable of competing with the emerging super China.

Answer 1

Never. The US dollar is strong because of how every small aspect of American culture is regulated and our history also is unique.

Putting two countries one that is stable and the other that isn't would kill any success the US dollar has made.

Answer 2

You put way too much faith in a unified currency.

For one, using silver to back a currency that is currently fiat (ie, not backed by anything but the Faith and Credit of the U.S.) would entail the purchasing of vast quantities of silver and necessitate in an incredible rise in the cost of silver as well as the printing of additional monies to purchase the commodity. The inflation caused by that alone merits not doing it.

Nor is there reason to think that a single currency would elevate the economy of Mexico. If we were to maintain Purchasing Power Parity (PPP), Mexican laborers would still be paid just as little. Mexico's problems are more institutionally ingrained than can be remedied by a currency shift.

Nor is there reason to think illegal immigration would be curbed. Indeed, since the opening of the Euro Zone, illegal immigration has drastically increased from Eastern Europe to Western Europe, to the point of creating ghettos for immigrants and enhancing ethnic tensions significantly. This is because people migrate to find a better quality of life, and adjusting the currency will not change that quality of life as quickly as packing up and moving.

If you are going to press forward with it, consider changing the name. NAD is a slang term for testicles in the U.S., and resembles the Spanish word for "nothing".

Answer 3

No. The U.S. is a net importer of oil. Canada is a net exporter of oil. As a result, when oil prices rise, you need to expand money supply in the U.S., but contract it in Canada. With two countries having the same currency, this is impossible. Many other external shocks would have the same asymmetric effect.

As to silver backing, this is likely to produce deflation, as supply of silver expands much more slowly that GDP.

Also, your claim that the common currency "would help to curb illegal immigration" is completely baseless.

You need to read up on theory of optimal currency areas. There was a lot of serious economics done on the subject in the 1960s. Here are a few references to get you started:

Mundell, R.A. (1961), "A Theory of Optimum Currency Areas", American Economic Review 51: 657-665.

McKinnon, R.I. (1963), "Optimum Currency Areas", American Economic Review 53, 717-724.

Kenen, P. B. (1969), "The Theory of Optimum Currency Areas: An Eclectic View", in Mundell, R.A. and Swoboda, A.K. (eds.), Monetary Problems of the International Economy (Chicago: University of Chicago Press).

Answer 4

i'm a great deal adversarial. I presented up this difficulty on Yahoo solutions countless months in the past. The reaction I were given then changed into over whelming. each and absolutely everyone concept i changed into nuts. may not in any respect take position. Now that is transforming into a truth. I see no benefit by any ability for any American except the persons sitting in the White homestead and their households. Wait till the NAFTA large highway is executed. we will be executed too.

Answer 5

Good question; however, the problem would be the world's acceptance of it. The greenback or U.S. dollar is the world's international currency for reserves. To change this would mean changing decades of the world's most lucrative and stable currency that is exchanged in almost every country in the world.

Answer 6

Because the value of silver is more volatile than either the US dollar, the Canadian dolar, or the Mexican peso, it would not be more stable than any of these three currencies.

I would support a N. American dollar, but not one backed by silver.

Answer 7

Depends. If the value of the uniformed dollar stays the same rate as our dollar, then yes. If the value drops, then prices here should go down as well, or I wouldn't support it.

Answer 8

The US inflation rate is fine. It has been for a long time. There is no advantage at all to America to do this.

Answer 9

interesting idea. but won't it be difficult to teach all the mexicans and canadians to speak english?

Answer 10

i couldn't care less. if it means more money in my pcoket then im all for it.