Monetary union, feasibility for latin America

Abstract

As a result from a series of events and events that took place in the economic order throughout history and that influenced the political conduction of the countries, it is the interest of many continents, regions and countries to design a monetary union. The objective that arises for the present investigation is to analyze the existing conditions in Latin America for the possible implementation of a monetary union, for the development of the objective we rely on the criterion of authors of relevant international trajectory in the areas of economy and finance such as Bayoumi, Eichengreen, nobel prize laureates Joseph Stiglitz and Robert Mundell were also consulted, their significant contributions were a great contribution for the present investigation. The methodology used was the realization of a retrospective and transversal analysis of the reality of Latin America to implement the monetary union. Both the proposed objective and the methodology, together with other research techniques, allow us to state, as main results, that Latin American countries have insufficient capacity to obtain sufficient foreign currency to maintain and / or stabilize their balance of payments and close its international accounts, it is argued that the use of numerous currencies creates multiple difficulties for regional commercial exchange. It is considered as final considerations that Latin America still does not meet the necessary conditions for a single currency to circulate since the economic models of the different countries of the region are totally divergent from each other.