North American Monetary Union and the Dutch disease in Canada and Mexico

Abstract

R. Blecker and M. Seccareccia offer a detailed analysis of the effects that the increased demand for raw materials, oil in particular, have had on the exchange rates of Mexico and Canada, and the performance of their economies. Likewise, the authors further examine the relationship between the economic policies followed in both countries and their inflationary goals. Through a comparative analysis with the European monetary system, Blecker and Seccareccia contemplate the challenges that the formation of a Monetary Union in North American (Canada, United States and Mexico) would pose.