The Seductive Myth of Canada’s “Overvalued” Dollar
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.
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|Publication status:||Published on the C.D. Howe Institute website, June 2013|
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- 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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