What is an Amero?

Answer 1

It is the hypothetical currency that a "North American Union" between Canada, the United States and Mexico would use.

Right now however, a "North American Union" with the Amero as currency is impractical, and at least for the next 20 years, such union and currency are the stuff of conspiracy theories.

Canada and the United States are very well integrated on economic, cultural and demographic terms (both are developed countries with common cultural traits). A North American Union is almost impossible to implement at this time, due to Mexico's characteristics.

From an economic point of view, Mexico is a developing country, with a much lower income per capita than either Canada or the U.S. A Mexican earns on average a third of what a Canadian does and a quarter of what an American earns (US 13,500 vs 38,300 vs 46,400). If Mexico is ever integrated into such union, many issues would arise, such as trying to absorb 47 million workers (the Mexican workforce) and level up their wages. The easiest way to level the wages of all three countries would be to lower the wages of Americans and Canadians alike; this of course is a major stopper for such integration.

Another problem is the Mexican laws. They differ greatly from Canadian and American laws, and although this theoretically should not be an issue, it could have a great impact on the three economies. For instance, Mexican environmental laws are much more relaxed. This would prompt many industries in Canada and the States to migrate to Mexico, thus implying a great job loss. Many Unions in Canada and America are making their best to stop such kind of integration.

Answer 2

An amero is a theoretical unified currency of Canada, the United States, and Mexico.