Free Trade in the Americas
Show Less

Free Trade in the Americas

Economic and Political Issues for Governments and Firms

Edited by Sidney Weintraub, Alan M. Rugman and Gavin Boyd

This book examines the Free Trade Area of the Americas (FTAA), an ambitious venture in regional market integration which builds on the principles of the North American Free Trade Agreement. It assesses the long-term corporate and public policy measures to cope with the increased monetary, fiscal and structural interdependence that will be required if the benefits of the FTAA are to be realized.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: Hemispheric monetary cooperation

Gavin Boyd


Gavin Boyd The growth, employment, and community building effects of hemispheric trade liberalization will depend on the development of regional monetary cooperation to facilitate productive interaction between financial sectors and the real economies. For the orderly expansion of regional trade and transnational production, it will be imperative to work collectively for the elimination of exchange rate risks, and this collaboration will have to extend into the management of financial markets, with an emphasis on productive funding and the restraint of potentially destabilizing speculation. The extremely disruptive consequences of high risk and high volume speculation in the USA during the 1990s – speculation which gave impetus to numerous forms of large scale corporate fraud – have indicated the vital importance of linkages between monetary policy and administrative measures for the reform of financial markets. Policy level and corporate understanding of these linkages has been challenged by the difficulties of recovery from the recession in the USA and by the magnitude of exchange rate problems associated with its unsustainable current account deficits. For Latin American states, with pathetic records of macromanagement failures, the clear requirement for regional monetary cooperation has to be recognized with awareness that market led dollarization in their economies, activated mainly by persistent financial crises, will accelerate with hemispheric trade liberalization, despite the problems of macromanagement in the USA. Latin American states are losing elements of monetary sovereignty as their weak currencies are being undercut by the US dollar. This kind of problem was experienced by European states before the formation...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.