The Merco: A Common Currency for Mercosur and Latin America
Author(s)
Malamud, Bernard; Label, Wayne A.
Abstract
The economics of dollarization has received much attention in recent years. Instead, prospects for a common currency for Latin America that world float against the world’s major currencies are examined. It is suggested that such a common currency, the merco, would first be adopted by the Mercosur nations – Argentina, Brazil, Paraguay, and Uruguay, with associate members Bolivia and Chile – if it were adopted at all. The advantages and disadvantages of fixed exchanged rates are considered. Moves to economic integration in the Western Hemisphere are reviewed.
