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 â€” 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 â€” a sign for some observers that the currency is overvalued.
Read more Business News
- The tale of two KegsKelowna - 5:00 am
- Girl carried off into bushesBC - 6:47 am
- Top crash sitesCentral Okanagan - 7:06 am
- Pulp mill owner to pay large fineBC
|QHR Technologies Inc||1.25||-0.01|
|Anavex Life Sciences||0.19||+0.006|
|Copper Mountain Mining||2.38||-0.04|
|Sunrise Resources Ltd||0.065||+0.045|
|Mission Ready Services||0.31||-0.01|
Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...
Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...
Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...