This paper deals with the possible future strengthening of the economical integration among the countries of Mercosur, similar to the European integration related to the Maastricht agreement. Some of the problems associated to the coordination of macroeconomic policies and the monetary...

The paper starts with the assumption that the Mercosur countries have decided to pursue monetary integration. These countries have essentially two options: a decentralized monetary union (MU) whereby each member country either pegs to the U.S. dollar or dollarizes outright; or a centralized MU...