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International
political economy
Pondering the question of a North American monetary union
The
contemporary fascination with money is intense and far-reaching. Money
drives economies, budgets and personal spending. It is the foundation
of post-modern consumer culture. Yet rarely do individuals pause to consider
the effects of currency beyond its face-value purposes.
Professor Eric Helleiner is convinced that currency is also a conduit for history and national identity. As nations emerged in the mid- and late-19th century, national currencies were born and became an integral part of national and global political structures.
"Before the mid-19th century no one had a standardized national currency. Monetary systems were very chaotic. Part of nation building was the creation of national currencies. We all hold that money, as citizens of nations. It is a collective experience," explains Professor Helleiner.
After years of entrenched national currency use, it is fascinating to see parts of the globe moving to a new system altogether. Europe, with the introduction of the euro, has been a leader in monetary union theory and practice.
"There are pros and cons to adopting broader monetary systems," says Professor Helleiner, who is focussing his Canada Research Chair work on the possibility of a North American monetary union.
"Canada is unusual with its monetary history. We have had a floating exchange rate for a long time, which is unusual, and to consider monetary union would be a big shift," he says, adding that public discussion around a North American monetary system is still in its infancy.
Unlike the European scenario, where a new currency was developed for a large region, Professor Helleiner feels a North American monetary union would likely involve adoption of the American dollar. This raises a whole range of questions and issues, and Professor Helleiner is attempting to gauge what people of all political stripes feel about this potential development. By evaluating present political and economic trends and philosophies, he may be able to provide a clearer picture of what leaders are thinking.
"Part of the globalization process has been that every national currency is subject to so much speculative pressure," says Professor Helleiner. "We now live in an era when people question national currency and it’s a fascinating question."
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