Why Canada Needs a Flexible Exchange Rate

John D. Murray

in The Dollarization Debate

Published in print May 2003 | ISBN: 9780195155358
Published online November 2003 | e-ISBN: 9780199832989 | DOI:
Why Canada Needs a Flexible Exchange Rate

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This chapter examines the flexible exchange rate regime in Canada and the renewed interest in a common currency with the United States. The flexible exchange rate has not undermined Canada’s economic performance. The economy country made not have coped with the Asian crisis and decline in world commodity prices without a depreciating Canadian dollar. However, it is possible that the Canadian economy may change in ways that make a common currency more attractive in the future.

Keywords: Canada; flexible exchange rate; currency; monetary policy

Chapter.  8766 words.  Illustrated.

Subjects: International Economics

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