Tuesday, October 21st14.5°C
23836
22952

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

21297


Recent Trending




Today's Market
S&P TSX14546.35+208.58
S&P CDNX822.4611.11
DJIA16595.54195.87
Nasdaq4413.075+97.00
S&P 5001939.35+35.34
CDN Dollar0.8908+0.0049
Gold1248.20+3.50
Oil82.07+0.69
Lumber329.40-1.50
Natural Gas3.715+0.045

 
Okanagan Companies
Pacific Safety0.100.00
Knighthawk0.01-0.005
QHR Technologies Inc1.15+0.03
Cantex0.055-0.025
Anavex Life Sciences0.1995+0.0085
Metalex Ventures0.045-0.005
Russel Metals33.08+0.80
Copper Mountain Mining2.16+0.17
Colorado Resources0.150.00
ReliaBrand Inc0.012+0.0009
Sunrise Resources Ltd0.060.00
Mission Ready Services0.465+0.015

 



23846

FEATURED Property
20884852220 charleswood drive
4 bedrooms 2 baths
$459,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_



23803




Member of BC Press Council


23524