NAFTAWill there EVER be one currency for the members of NAFTA? Will there EVER be a world currency? why or why not? Can you develop a plan that will allow for such an idea?

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brettd's profile pic

brettd | High School Teacher | (Level 2) Educator Emeritus

Posted on

I have a hard time envisioning it would ever happen, for the reasons stated above.  Canada, for example, had sensible banking regulations in place throughout the last decade, so while American and European banks were struggling and folding, Canadian banks, and therefore their economy as well, came through the greatest recession in 80 years with flying colors.  Why would they want to compromise that security by trusting their economy to countries with policies they cannot control or influence?

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justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

The present social, political and economic differences between the nations of the World makes it very difficult for a common currency to come into existence. That would involve a lot of integration of various policies involving taxation, tariffs, movement of goods and labor that does not seem very feasible for a long time to come.

accessteacher's profile pic

accessteacher | High School Teacher | (Level 3) Distinguished Educator

Posted on

I severely doubt it. As a British citizen, I think you only have to look at the Euro and the various problems that the European Union countries who have adopted it are experiencing to see the potential pitfalls. A national currency is not something that can be lightly dismissed.

stolperia's profile pic

stolperia | (Level 1) Educator Emeritus

Posted on

Too many concerns about "other countries" pursuing policies that might have negative impacts on "my country"; too many nationalistic prides not willing to condescend to linking economic futures with those of foreigners.

The idea of a universal currency, either specifically in the Americas or worldwide, is appealing in theory, but it will never happen in real life.

literaturenerd's profile pic

literaturenerd | High School Teacher | (Level 2) Educator Emeritus

Posted on

I, also, doubt that there will ever be a world currency. For one reason, I think that some countries like the idea of the exchange rate given some currencies are worth less then their own. Therefore, they can get more when buying with a specific currency or vacationing in a different country.

rrteacher's profile pic

rrteacher | College Teacher | (Level 2) Educator Emeritus

Posted on

I doubt that we will see a single currency, as American politicians in particular have shown very little interest in it. There are several nations in this region, particularly in the Caribbean that have pegged their currencies to the dollar, but I think that will be the extent of it. Mexican leaders have expressed a desire for a single currency before, but it would have to be in the interests of the USA for it to have a chance.

kplhardison's profile pic

Karen P.L. Hardison | College Teacher | eNotes Employee

Posted on

These questions are purely speculative and open to opinion, either well-founded or ill-founded ones. Personally, I envision a day when NAFTA will at least attempt to move to a single currency. A worldwide currency seems a harder aim to achieve. Not even every country in the European Union has replaced their currency with the Euro. If there were to be a world currency, the major social, political, military conflicts existing now will need to have been settled and negotiated away.

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

Not a chance.

We in the US are very jealous of our sovereignty and do not want to do anything that would appear to jeopardize it.  The idea that we would agree to have a common currency with Mexico is unthinkable.  We would fear having to have Mexican input into our decisions and we would (with reason, given the EU's problems) fear that they would drag us down.

readerofbooks's profile pic

readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted on

I do not think that there will ever be a world currency. Even the idea of several nations sharing one currency is problematic, as post 2 suggest in view of the Euro zone problems. There are too many variables in nations to have a common currency. Why would a strong economic country bail out a weaker country? It makes little sense. The only way that I can see a common currency is if the whole world is reeling in pain and it is imposed from the top.

vangoghfan's profile pic

vangoghfan | College Teacher | (Level 2) Educator Emeritus

Posted on

Attempts to set up a common currency among nations should be viewed with great skepticism, as the recent developments with the Euro suggest. Monetary integration is often the first step toward attempted political integration. Ironically, both kinds of integration can often cause enormous tensions, as we are seeing in Europe today.  I'm not sure the Europeans have ever been less united in the last fifty years than they are now.

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