Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: shaggy eel
Advantage to $ANZAC/Aussie currency would be liquidity and a general lowering of transaction costs/risk premia.

Disadvantage would be akin to that of the Euro, with forcing two economies into one currency pigeonhole. In your case, as your economies are so closely intertwined and have (at this great distance) similar political cultures, that wouldn't be much of an obstacle.

There'd also be the issue of deciding who/how to manage the new beastie, and that row would likely scupper any merger.

Adopting the $US would be a blunder, as your economies are not all that tightly tied to America's, and you'd run into a problems parallel to Argentina, tho nowhere near as severe.

27 posted on 04/25/2002 6:15:00 PM PDT by NativeNewYorker
[ Post Reply | Private Reply | To 26 | View Replies ]


To: NativeNewYorker
,,, at some point we'll become part of a formal trade bloc, Asian or otherwise and I guess the issue will most likely be addressed at that stage. The $NZ is a bit undervalued right now.
30 posted on 04/25/2002 6:20:07 PM PDT by shaggy eel
[ Post Reply | Private Reply | To 27 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson