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Article: Productivity and the dollar: commodities and the exchange rate connection.
- Article from:
- C.D. Howe Institute Commentary
- Article date:
- February 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 C.D. Howe Research Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In this issue...
The chief culprit in Canada's relatively poor productivity performance is not the country's flexible exchange rate regime. The recent slide in the Canadian dollar has been caused mainly by the worldwide decline in the prices of nonenergy commodities, on which so much of Canada's economy depends. The flexible exchange rate regime has, in fact, helped to smooth the effect of falling commodity prices and made it easier to employ productive inputs elsewhere in the economy.
The Canadian dollar's dip in late 2001 and early 2002 was, predicably, the occasion for further discussion of the country's current and future international monetary ...