Discussion of Forex Trading and Currency Trading

What are the advantages/disadvantages of a single US/Canadian currency?

The Europeans now have a single currency that stretches across two dozen or so countries and they are seeing a lot of benefits form it in terms of business and tourism.

Is it about time that the US and Canada went the same way?

What would the relative advantages and disadvantages of there being a single North American currency shared by the US and Canada?

Sensible answers pro/con answers only, haters and people looking to stir up trouble will be reported as appropriate.

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5 Responses to “What are the advantages/disadvantages of a single US/Canadian currency?”

  1. Argument for a single currency:
    - improvement in exports and imports
    - increased tourism between two countries
    - more stable currency market in North America
    - greater importance of the $US in the world market

  2. Canada would lose even more control over its economy. That could work out to be good or bad, but if I were Canadian, I'd rather not take that chance at a time when the US government is spending with abandon, racking up enormous amounts of debt and inflating the money supply.

  3. bestimtools Says:
    June 29th, 2009 at 8:00 am

    Instead of trying to get through this picture - alternatively - you can invest part of your money into silver or gold bullion and come through these problems with old currencies failing and new currencies to come.

    Surely the market of bullion investments is also full of surprises: there are risky things on it too (scale of risks in this post http://www.freeinvestmentblog.com/free-investment-tips/circulated-silver-coins-how-to-buy-junk-silver-coins/)

    But in any case gold and/or silver is much better than paper.

  4. Loyalist Cannons Says:
    June 29th, 2009 at 8:00 am

    This is a poor idea, especially for Canada, as it would be one more Canadian noun absorbed into the American orbit. It would probably benefit the USA because of Canada's massive primary resources wealth, but overall, it is a bad idea for Canada, a country who's economy is based on the marketting of needs (fuel, oil, wood), to further bind its economy with the USA, whose wealth is based on the marketting of wants (cars, electronics, manufactured consumer products, etc).
    It is never a good idea to tie your ship to another ship that is bound to sink, when your own ship is perfectly capable of floating on its own, especially when the people on the sinking ship are trying to take over yours.

  5. hi - the Single currency isnt a benefit to everyone in Europe. lets say for example that Ireland has low inflation, but Germany (by far the biggest economy in the EU) has high inflation. the EU would raise interest rates to combat the high inflation, but this would not be good for ireland.

    in your example, the CAD and USD are affected in a big way by oil prices - canada exports lots of oil, US imports lots of oil. So, if oil prices go up, the CAD strenghtens and the USD weakens. A single currency would not work in real terms as the 2 economies are so very different, much like the single currency in the EU is a detriment to most nations, and only really benefits the big guns like France and Germany.

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