Eduardo F Magalhães Pimenta
5209846
ECON 331



OUTLINE:

(1) Title Page – indicate word count

(2) Table of Contents

(3) Introduction
(a) Thesis: An analysis of a Common Currency in North America: advantages and dis-advantages. 

(4) Body of Paper
I) Advantages:
a) Direct gains from the elimination of transaction costs. 
b) Indirect gains from the elimination of transaction costs: price transparency. Ability of consumers to make accurate price comparisons, and its effects on competition.
c) Welfare gains from less uncertainty on trade and investment.
d) Monetary efficiency gains
	i) GG schedule.
II) Dis-advantages:
a) Dependence in monetary policy. One single fraction conducts monetary policies for all.
b) Stability loss from giving up the ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment.
	i) LL curve.
c) Interdependence on economic integrity and labor mobility.
	III) Comparison with existing common currency areas. Similarities and differences between North America and EU. 

(5) Conclusion 
	a) Recapitulation of the advantages and disadvantages. 
	b) North America qualifications for a optimum common currency area.

(6) Footnotes (Endnotes)

(7) Bibliography

(8) Appendix







Bibliography sources:

De Grauwe, Paul, Economics of Monetary Union - 5th ed., Chapter 3 and 4, Oxford University Press, 2004.

Gerber, James, International Economics - 3rd ed., Chapter 14.

Krugman, Paul R., International Economics: theory and policy / Paul R. Krugman, Maurice Obstfeld,-- 7th ed, chapter 20. http://oregonstate.edu/~korua/TEACHING/econ 441/ch20&22.ppt

Laidler, David E. W., “One Market, One Money? European Lessons for North America”, C.D. Howe Institute Commentary, October 1991.