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The Seductive Myth of Canada’s “Overvalued” Dollar

Author

Listed:
  • Christopher Ragan

    (McGill University)

Abstract

A confluence of factors promises to put pressure on the new Bank of Canada governor to direct monetary policy at fixing Canada’s so-called “overvalued” currency, according to a report released today by the C.D. Howe Institute. But in “The Seductive Myth of Canada’s “Overvalued” Dollar,” author Christopher Ragan provides two strong arguments against doing so: the importance of the Bank’s focus on inflation, and the weakness of the “overvalued” dollar argument.

Suggested Citation

  • Christopher Ragan, 2013. "The Seductive Myth of Canada’s “Overvalued” Dollar," e-briefs 158, C.D. Howe Institute.
    • Handle: RePEc:cdh:ebrief:158
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    File URL: https://www.cdhowe.org/public-policy-research/seductive-myth-canada%E2%80%99s-overvalued-dollar
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    References listed on IDEAS

    as
    1. Philipp Maier & Brian DePratto, 2008. "The Canadian Dollar and Commodity Prices: Has the Relationship Changed over Time?," Discussion Papers 08-15, Bank of Canada.
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    More about this item

    Keywords

    Monetary Policy;

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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