ABSTRACT
Greater integration of Canadian and American markets is rendering more onerous the distributional consequences of exchange rate volatility. There exists debate around the relative significance of destabilizing currency speculation. Many are considering the benefits of greater exchange rate stability and thus seeking a solution to the problems inherent in maintaining the status quo. A single North American currency is the extreme solution. The initial successes of the euro have set the first precedent and reduced some of the associated uncertainty of this method of gaining exchange rate stability.2
