This paper considers the extent to which the North American Free Trade Area (NAFTA) meets the criteria for a common currency area. NAFTA is compared with the EC, a regional grouping for which initial plans for a monetary union are already in place. Most of the anticipated benefits from a...

This paper contrasts two views of international currency status: an “old view” in which network increasing returns are sufficiently strong that one currency dominates international markets at any point in time, versus a “new view” in which networks are open and several international...