ABSTRACT
This chapter examines the parallels with the European case made by both sides in the economic policy debate that peaked in the 1999-2002 period. It begins by providing an understanding of the European case. The chapter outlines the interpretation of the major developments in the birth of the euro. It also examines the use of European parallels in the Canadian currency debate. The chapter argues that the proponents of a North American common currency relied very little on the European experience to support their case for the need for a common currency. A number of more circumstantial variables also played a significant role in the choice of currency union. The solution of a currency union was particularly appealing since Germany was already perceived as playing a hegemonic role in the European Monetary System (EMS). The Canadian currency debate of the late 1990s owed a good deal to the impending birth of the euro.
