Friday, October 24th0.6°C
23840
22916

Talking down the Canadian dollar ignores long-term costs, critics warn

OTTAWA - The Conservatives may see the loonie's downward trajectory as giving the economy a fortuitous boost, but critics say talking down the currency could also exacerbate underlying problems in Canadian business.

Finance Minister Jim Flaherty has made a point of noting that a weak dollar can spur economic growth by boosting exports — a boon for a government with its sights set squarely on balancing the books.

But former Liberal finance minister Ralph Goodale warns against encouraging the dollar's descent.

He says a weak currency also raises the cost of importing goods, such as equipment, which can hurt productivity.

He says the Tories aren't addressing sluggish growth in productivity and declining international competitiveness.

The loonie dropped to 89.73 cents US today, one day after the Bank of Canada said the dollar remains strong despite its recent decline — a sign for some observers that the currency is overvalued.

The Canadian Press


Read more Business News

23015


Recent Trending




Today's Market
S&P TSX14496.64+9.81
S&P CDNX805.51-3.09
DJIA16733.6555.75
Nasdaq4465.83+13.038
S&P 5001956.94+6.12
CDN Dollar0.8912+0.0008
Gold1230.20+1.10
Oil80.28-1.47
Lumber335.80+6.20
Natural Gas3.571-0.051

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.14-0.03
Cantex0.07+0.015
Anavex Life Sciences0.195-0.003
Metalex Ventures0.045+0.005
Russel Metals33.20+0.04
Copper Mountain Mining2.05-0.03
Colorado Resources0.14-0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.410.00

 





FEATURED Property
20717724708 Heltman Road, Armstrong
4 bedrooms 3 baths
$839,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22771