A moeda comum como base do crescimento do Brasil e da Argentina

Abstract

This paper analyses the deepening of economic integration between Brazil and Argentina, one of the elements which are going to define the decisions of Brazilian companies along the decade, besides with the formation of the American Free Trade Area (Afta). The motivation for integration, despite the scenario faced by the countries and the feasibility of new progress despite of the differences between the exchange rate arrangements of Brazil and Argentina, are commented. Finally, a proposal is made, including a set of actions that would conclude with the issue of a common currency (the “escudo”) in 2011. This could be seen as the most powerfull instrument of industrial policy of the two countries, in order to take advantage of the economies of scale associated with a common market.