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Is a high(er) dollar good or bad for Canada?

A very rhetorical subjective question for those out there that are economists or who study it. I ask because the Canadian dollar has reached its highest level since 1978:

Positive retail sales numbers gave the Canadian dollar another boost Friday to levels not seen since Pierre Trudeau was prime minister 30 years ago..The Canadian dollar jumped 0.84 of a cent to 91.86 cents (U.S.)

Now on the one hand, it hurts Canadian manufacturers who export to the US. On the other hand, imported stuff from the US became a lot cheaper, and people who want to take vacations to the US benefit as well. I know we have a couple of progressive economic think-tank blogs at Progressive Bloggers.. so I’ll be interested in their take (and any of my readers if they want to weigh in).

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5 comments to Is a high(er) dollar good or bad for Canada?

  • Is the CAD actually exceptionally high, or just high on a low USD? The USD against the Euro and Pound is weak, and has been for awhile. Perhaps the Canadian market has grown some independence from the US due to it’s resource wealth.

  • qwerty

    If manufacturing was as big in the economy as the media pretends it is, it would be. Really though, it just means we’re all relatively richer. Easier to keep doctors and others from going to the US.

  • Humour me Mushroom. This is my blog.. You can debate the Tobin tax on yours :em19:

    I don’t usually allow people with “fake” email addresses stay on here Anon, nor their comments, but I’ll accept I used the wrong description of the question and replace it with a more fitting term.

  • mushroom

    The exchange rate of the Canadian dollar should not be the focus of any debate about progressive economics.

    But if you want to talk about whether Dion should promote the Tobin tax in the next election campaign against Harper’s Cons, then the game is on.

  • Anon Y. Moose

    Do you know what rhetorical means?

    If it’s a rhetorical question, that means you don’t want an answer. Since you are seeking an answer, the question is not rhetorical.

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