A common North American currency would bring about lower long-term interest rates, greater price stability and improved trade, says a new report from the Fraser Institute.
The study calls for a North American Monetary Union that includes Canada, the United States, and Mexico.
It proposes a common currency, called the "amero," which would have its own distinctive emblem on one side and national symbols on the other.
The study's author, Herbert Grubel argues that flexible exchange rates have not brought Canada the benefits promised by its advocates.
Instead, he says, they have reduced labour market flexibility and delayed Canada's adjustment to declining world prices for natural resources.
"This system has contributed to Canada's high and excessive reliance on the production of natural resources," says Grubel, a senior fellow at the institute.
"A monetary union will ensure that we move to the high-tech and other profitable and expanding industries at a more optimal pace, and Canadians' productivity and living standards will increase correspondingly."
The study says Canada's cultural sovereignty and political independence would not be affected by monetary union, arguing that monetary union would not inhibit Canada's ability to pursue its own tax, spending, social, regulatory and foreign policies.