Why the Bank of Canada should not Take Aim at Canada’s “Overvalued” Dollar
The view that the dollar is overvalued is on shaky ground
By C.D. Howe Institute —— Bio and Archives--June 25, 2013
Canadian News, Opinion | Comments | Back To Full Article
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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