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ID number:727244
Evaluation:
Published: 27.05.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Monetary Union with United States
In recent years, there has been an ongoing debate over Canada's exchange rate policy because of its volatility and low value against the U.S. dollar. Canada has two reasons to be still in a floating exchange rate system: Keeping open capital markets going and independence of its monetary policy that led Canada to be successful in stabilizing its economy by keeping inflation and interest rates low. Although this is the case, in their paper, "From Fixing to Monetary Union: Options for North American Currency Integration." Thomas Courchene and Richard Harris argue that flexible exchange rate regime is not useful anymore for growing Canadian economy.

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