Description
Abstract: 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. © 2003 by Oxford University Press, Inc. All rights reserved.