Towards North American Monetary Union?

Towards North American Monetary Union? PDF

Author: Eric Helleiner

Publisher: McGill-Queen's Press - MQUP

Published: 2006

Total Pages: 349

ISBN-13: 0773530568

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Many believe that Canada's deepening economic integration with the United States and the worldwide trend towards currency blocs will eventually lead to a North American monetary union. In the first detailed analysis of Canadian exchange rate politics, Eric Helleiner challenges this view.Helleiner finds little support in the US for the concessions that would be necessary to make a North American monetary union palatable in Canada. Comparing the US Federal Reserve and the European Monetary Union, he argues that Canada would exercise far less influence within a North American monetary union than individual countries do within the European community. He also analyses the seemingly paradoxical support of Quebec sovereignists for free trade and monetary union.Towards North American Monetary Union'explores Canada's unusually strong commitment throughout the twentieth century to a floating exchange rate for its national currency - a commitment that Heilleiner argues is likely to endure.

Exchange-rate Policy

Exchange-rate Policy PDF

Author: Arthur FitzWalter Wynne Plumptre

Publisher: Princeton, N.J. : International Finance Section, Princeton University

Published: 1970

Total Pages: 24

ISBN-13:

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Leaning Against the Wind

Leaning Against the Wind PDF

Author: Paula A. Tosini

Publisher: Princeton, N.J. : International Finance Section, Department of Economics, Princeton University

Published: 1977

Total Pages: 44

ISBN-13:

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Canada's Pioneering Experience with a Flexible Exchange Rate in the 1950s

Canada's Pioneering Experience with a Flexible Exchange Rate in the 1950s PDF

Author: Michael D. Bordo

Publisher:

Published: 2007

Total Pages: 64

ISBN-13:

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This paper revisits Canada's pioneering experience with floating exchange rate over the period 1950-1962. It examines whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open economy model of the Canadian economy. The model is then used to conduct a counterfactual analysis of the impact of different monetary policies and exchange rate regimes. The main finding indicates that the flexible exchange rate helped reduce the volatility of key macro-economic variables. The Canadian monetary authorities, however, clearly did not understand all of the implications of conducting monetary policy under a flexible exchange rate and a high degree of capital mobility. The paper confirms that monetary policy was more volatile in the post-1957 period and Canada's macroeconomic performance suffered as a result.