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The Dollarization Debate$
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Dominick Salvatore, James W. Dean, and Thomas D. Willett

Print publication date: 2003

Print ISBN-13: 9780195155358

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0195155351.001.0001

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Why Canada Needs a Flexible Exchange Rate

Why Canada Needs a Flexible Exchange Rate

(p.341) 19 Why Canada Needs a Flexible Exchange Rate
The Dollarization Debate

John D. Murray

Oxford University Press

This chapter examines the flexible exchange rate regime in Canada and the renewed interest in a common currency with the United States. The flexible exchange rate has not undermined Canada’s economic performance. The economy country made not have coped with the Asian crisis and decline in world commodity prices without a depreciating Canadian dollar. However, it is possible that the Canadian economy may change in ways that make a common currency more attractive in the future.

Keywords:   Canada, flexible exchange rate, currency, monetary policy

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