ABSTRACT
The introduction of the euro and the increasing economic convergence and integration of the NAFTA member countries have stimulated a debate on the feasibility of adopting a common currency among Canada, the United States and Mexico.1 The Mexican president-elect Vicente Fox, on a recent visit to Ottawa proposed a North American equivalent to the European integration project, with open borders, common currency, and an equivalent to the social cohesion funds to finance schools, roads, and infrastructure in Mexico. The creation of such a monetary union would certainly be the most ambitious, and controversial, project in many decades.
