To share a currency is to have a single (or at least congruent) fiscal and monetary policy. I don’t think those countries (or any group in Latam, including eg Mercosul) have.
We tried that with both the Gran Colombia (Colombia, Venezuela, Panama, and Ecuador) and the Peru-Bolivia Confederation. Both crashed down. It was a very bad idea both times. The latter, at the very least, disbanded because of a war it started. So, no, we shouldn’t.
Of course no. Then one of those countries elect some weird ass president Chavez/Maduro/Trump style, said president has some crazy fiscal policy and they help to break all those 4 countries together.
The issue with any single monetary policy is that it requires the infrastructure to have similar monetary policies and stable governments. This takes a long time. Before the adoption of the Euro, European nations created the European Economic Community (EEC) in 1950s, which aligned European finances. This included tons of treaties and working groups, along with the resolution of many international political conflicts. It wasn’t until 1999 for the Euro to launch.
Now, Andean nations have the Comunidad Andina, which is a free trade agreement with the goal of establishing a custom block. However, they have been unable to create any stability as to move forward. For example, when Colombia and Peru signed FTAs with the US, Venezuela withdrew from this agreement (back when Venezuela was still wealthy). Also, internal stability per country has been lackluster. Peru has had multiple presidents in a short period, which included an attempted coup. Bolivia had a coup and an attempted coup recently. Ecuador is sorting its shit out after the Correa regime left the country in a messy situation.
In short, too many things need to happen for a single currency, and thus it appears that it would be a really distant dream.
This is the same story for Mercosur.
To be honest, I’m not going to say it could never happen because the same was said about Europe. However, the likelihood of it happening is extremely low.
The only way that could make sense is if the other countries bend the knee to our central bank as long as Velarde remains president. Even then, the day Velarde goes we’re as fucked as anyone else.
Neither the Andean Community nor the Mercosul should have a single currency. Adopting a single currency would drag down the most economically stable countries.
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To share a currency is to have a single (or at least congruent) fiscal and monetary policy. I don’t think those countries (or any group in Latam, including eg Mercosul) have.
We tried that with both the Gran Colombia (Colombia, Venezuela, Panama, and Ecuador) and the Peru-Bolivia Confederation. Both crashed down. It was a very bad idea both times. The latter, at the very least, disbanded because of a war it started. So, no, we shouldn’t.
Of course no. Then one of those countries elect some weird ass president Chavez/Maduro/Trump style, said president has some crazy fiscal policy and they help to break all those 4 countries together.
Why would we give up the dollar for this?
Lol, lmao even, good luck trying to get Ecuador to ditch the dollar
The chulo
The issue with any single monetary policy is that it requires the infrastructure to have similar monetary policies and stable governments. This takes a long time. Before the adoption of the Euro, European nations created the European Economic Community (EEC) in 1950s, which aligned European finances. This included tons of treaties and working groups, along with the resolution of many international political conflicts. It wasn’t until 1999 for the Euro to launch.
Now, Andean nations have the Comunidad Andina, which is a free trade agreement with the goal of establishing a custom block. However, they have been unable to create any stability as to move forward. For example, when Colombia and Peru signed FTAs with the US, Venezuela withdrew from this agreement (back when Venezuela was still wealthy). Also, internal stability per country has been lackluster. Peru has had multiple presidents in a short period, which included an attempted coup. Bolivia had a coup and an attempted coup recently. Ecuador is sorting its shit out after the Correa regime left the country in a messy situation.
In short, too many things need to happen for a single currency, and thus it appears that it would be a really distant dream.
This is the same story for Mercosur.
To be honest, I’m not going to say it could never happen because the same was said about Europe. However, the likelihood of it happening is extremely low.
The only way that could make sense is if the other countries bend the knee to our central bank as long as Velarde remains president. Even then, the day Velarde goes we’re as fucked as anyone else.
The entire South America should share a non-dollarizeed currency, even if just for trades.
No. Especially not with Bolivia.
Absolutely NO (unless they use our currency).
Bolivia alone would kill the value of such currency.
No
One of the few things we have going for us here in Ecuador is the dollar.
Funny how every currency has the same name (peso)
Neither the Andean Community nor the Mercosul should have a single currency. Adopting a single currency would drag down the most economically stable countries.
No thanks. We’re comfortable with the dollar.
Compartir moneda con bolivia no suena como un buen plan
No.