Carlos J. Alsua, professor of practice in the Eller College’s McGuire Center for Entrepreneurship at The University of Arizona: “Argentina and Brazil have often looked at the European Union as an example of ‘who I want to be like when I grow up.’ While both countries’ current attempts to promote economic cooperation and stability are admirable, the recent joint currency initiative between Argentina and Brazil is rather utopic. While a common currency could help to reduce exchange rate risk and increase trade between the two largest countries in South America, it also requires a high degree of economic and political integration, which Argentina and Brazil do not have. The two countries have vastly different economic structures and political systems. Without significant reforms, adopting a common currency will only exacerbate existing imbalances where the Bank of Brazil would become both countries’ de facto central bank. Both countries have a history of financial instability and high inflation (more so for Argentina), which will likely…”