Toronto bankers promote Amero (North American common currency)
Posted Tue, Feb 2, 2007 at 7:57 pm
From January 3 comes this:
If Canadians are going to debate the idea of a single North American currency, "now is the time it should be on the table," according to the chief economist at Toronto Dominion Bank [Don Drummond]...
[...discussion of and promotion of the Euro...]
...So, if you believe the single currency has been a good thing for Europe, could it be a good thing for North America?
"If you go back to FTA and then NAFTA," Drummond said, "the Number 1 premise behind those from a Canadian perspective was a message to the world: `Locate in Canada and you have free unfettered access to the wealthiest market in the world.'
"That was true to some extent, but you've had two irritations. One, you don't have a common currency, so you have exchange rate risk if you're operating in Canada. The second is the border difficulties.
"Clearly, a common currency, or at least a linked currency, would address one of those two," Drummond said.
[Canadian Imperial Bank of Commerce/CIBC World Markets economist Benjamin Tal] argued "the costs of a single currency and the loss of monetary policy independence outweigh the benefits...