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Mexico versus Canada: Stability Benefits from Making Common Currency with USD?

        

Mexico versus Canada: Stability Benefits from Making Common Currency with USD?

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Using a de facto classification of exchange-rate regimes, this paper investigates how the volatility of PPP-GDP per person and per hour of work is associated with such regimes in Mexico and in Canada. It finds that, for Mexico unlike Canada, the macroeconomic volatility left is much greater during periods when the nominal exchange rate with USD changes appreciably than when it is quasi-pegged. However, Mexico cannot safely peg to USD except through formal US-dollarization. Hence this finding... More
Material Type: Open Journal-Article
Technical Format: PDF
Date Added to MERLOT: March 02, 2011
Date Modified in MERLOT: March 22, 2011
Author:
Submitter: Howard Kuan

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Primary Audience: College Upper Division, Graduate School, Professional
Mobile Compatibility: Not specified at this time
Language: English
Cost Involved: unsure
Source Code Available: unsure
Accessiblity Information Available: unsure
Creative Commons: unsure

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