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A new NAFTA agreement came into effect in 2020. Discuss the desirability of different exchange rate systems under the new agreement - 1) a shift
A new NAFTA agreement came into effect in 2020. Discuss the desirability of different exchange rate systems under the new agreement - 1) a shift to monetary union*, 2) fixed but adjustable exchange rates among the Canadian dollar, USD dollar, and the Mexican peso, 3) and continuing the floating exchange rates among NAFTA currencies (i.e. the current regime).
What exchange rate system would your group favour? If the old NAFTA agreement was still in effect, would your choice have been different?
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