amero - Just like everything else, there are advantages and...

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Just like everything else, there are advantages and disadvantages with the Amero. Some argue that it may help the economies of Canada and Mexico, lower Mexican and Canadian interest rates and facilitate financial transactions. However, it will increase American interest rates, decrease American sovereignty, inflate the price of every-day items and usurp the authority of the U.S. Treasury (Farmer). The Amero would have an increasingly facilitative effect on financial transactions between all members of the proposed North American Monetary Union (Farmer). The complicated and sometimes inaccurate formula of currency exchange between the Peso, American Dollar and the Canadian Dollar would become a procedure of the past. Interest rates in Canada and Mexico have recently been around 30% due to their history of unsuccessful monetary policies (Byfield). Although interest rates in America are significantly lower, the three states would have to agree upon a single interest rate to satisfy all members of the proposed North American
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This note was uploaded on 02/25/2009 for the course POLS 1101 taught by Professor Lenny during the Spring '08 term at Georgia Perimeter.

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amero - Just like everything else, there are advantages and...

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