Amero is the currency which represents United States, Canada and Mexico. And the consequence of the economic co-operation between these three countries is called as North American Union. This is a concept which was patterned after the recoganition of Euro and European Union.
From where Amero idea came?
Amero idea was proposed by Herbert Grubel, Professor of Economics in the Institute of Fraser. Grubel theory was that the three nations in a single currency would increase the business by decreasing the complexity in transactions. Reduced complication would not cause to worry about the exchange rate between three countries or foreign exchange risk of exporters activities in North America. Amero will be reducing costs of borrowing for borrowers in all the three countries. Amero in North America, would cease wage arbitrage,that when one country hires labour working in another country which makes full benefit of exchange rate so as to create a cheap labor force.
The Defaults of Amero System
The main disadvantage of the transition with Amero is that it will limit U.S. monetary policy. Interests and “print money” now will be under the regulation of the three countries instead of one. The United States would be no longer autonomous in its business talks with other countries of theworld. United States will be covered by rules of two neighboring countries and this in turn can reduce the economic power.
The concept of Amero is real enough. However, the items on the Amero dollar, Loonie, and even weight are premature. There were rumors of a talk by a radio host, Hal Turner in a blog written in 2007 when he claimed that Amero was already minted. There was a picture of Amero included in the post. This picture actually was a sample from a Daniel Carr, a designer of collection of spoof coins.
Amero is real or Not?
The key thus is that Amero is an original idea, but it has no proof of that there is a North American Union, with Amero as its new currency. The Amero is an idea which was launched around and talked with no real plan for implementation.