13.04.2015 - Australia currency union more politics than economics
With NZ dollar approaching parity with the Australian dollar, the topic of a currency union with our Trans-Tasman cousins has once again emerged. This seems to be a debate that occurs around every fifteen years. The last time it captured the local imagination was just before the euro was formed in 1999. Around that time, Helen Clark said joining a currency union with Australia was "inevitable". There are clear pros and cons of going down the path of irrevocably fixing your exchange rate with a large neighbour. On the plus side, importers and exporters to Australia would no longer have to manage the uncertainty of exchange rate volatility...............................................Full Article: Source
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