Analysis of the impact generated by the creation of a common currency for Mercosur
DOI:
https://doi.org/10.5281/zenodo.10909736Keywords:
Economic Blocks, Mercosur, Free Trade Agreements, Economic and Monetary Union, Common CurrencyAbstract
Free trade agreements refer to the level of economic integration of countries within an economic bloc and primarily aim at reducing tariffs and taxes; this article aims to analyze the impacts generated on Mercosur with the creation of a common currency. Therefore, it was necessary to contextualize the origin and history of the economic blocks, the explanation about the free trade agreements and the impact itself. For its composition, the methodology used was a bibliographical research in physical books, magazines and scientific articles listing points of view on the subject. The results show that this creation, for example, can benefit the stability of countries due to unification, a stimulus to private and international investment, reduction of rates and interest. On the other hand, the loss of sovereignty and fiscal autonomy, resulting in the immobilization of domestic product shock policies, were also pointed out. Which imposes the conclusion that there are greater benefits to Mercosur in the creation of an economic and monetary union for the economic blocks.
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