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Criticisms of the Amero
A major obstacle to the creation of a unified currency is the sheer dominance of the United States in any such union. Unlike any country in the EU, the USA has a larger economy than the rest of its respective continent/union combined.
Differing cultural and social/economic objectives amongst the other western nations would be another point of contention.
A University of California, Santa Barbara paper puts forward the idea that the United States simply has too many advantages from the status quo to move towards a single currency.
The United States dollar already acts as a global currency, meaning any transition to a new currency would risk compromising this position and could cause a shift towards the euro or yen. The Greenback was used in over half of all the world's exports, double the total United States foreign trade.
The adoption of an amero could threaten the seignorage that America currently gains from its American dollar. While seignorage would still be gained from the amero, this would be shared between the Bank of Canada, the Federal Reserve and possibly the Bank of Mexico.
Therefore, even if the amero was used just as much as the U.S. dollar, the advantages would be shared among two or more countries, and not exclusively earned by the United States.
A major obstacle to the creation of a unified currency is the sheer dominance of the United States in any such union. Unlike any country in the EU, the USA has a larger economy than the rest of its respective continent/union combined.
Differing cultural and social/economic objectives amongst the other western nations would be another point of contention.
A University of California, Santa Barbara paper puts forward the idea that the United States simply has too many advantages from the status quo to move towards a single currency.
The United States dollar already acts as a global currency, meaning any transition to a new currency would risk compromising this position and could cause a shift towards the euro or yen. The Greenback was used in over half of all the world's exports, double the total United States foreign trade.
The adoption of an amero could threaten the seignorage that America currently gains from its American dollar. While seignorage would still be gained from the amero, this would be shared between the Bank of Canada, the Federal Reserve and possibly the Bank of Mexico.
Therefore, even if the amero was used just as much as the U.S. dollar, the advantages would be shared among two or more countries, and not exclusively earned by the United States.