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Much Appreciated? The Rise of the Canadian Dollar

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  • Michael B. Devereux

    (University of British Columbia and CEPR)

Abstract

Between 2002 and 2008, the Canadian dollar appreciated in real terms against the US dollar by 60 percent. This large change in real exchange rates between such major trading partners as Canada and the US is almost unprecedented. This paper explores the historical background to the movement of the Canadian dollar during this period, discusses the most accepted explanations for the appreciation, and speculates on the implications for the Canadian economy. The discussion is placed within the framework of recent developments in the theoretical and empirical literature on exchange rates.

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Bibliographic Info

Article provided by Rimini Centre for Economic Analysis in its journal Review of Economic Analysis.

Volume (Year): 1 (2009)
Issue (Month): 1 (September)
Pages: 1-33

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Handle: RePEc:ren:journl:v:1:y:2009:i:1:p:1-33

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Keywords: Canadian Dollar; Exchange Rates; Appreciation;

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