How the Canadian dollar’s plunge will juice the economy


Unknown

The rapid plunge in the Canadian dollar may be troubling to some, but it promises to provide a badly-needed boost to the economy.

Which is why Canadian policy makers are no doubt not wringing their hands.

The loonie, as the country’s dollar coin is known, sank by almost 7 per cent last year, and is down a further 3 per cent so far this year, its decline largely driven by weak economic readings and the promise of a very easy-going Bank of Canada under governor Stephen Poloz.

According to a new report from Bank of Montreal today, a 10-per-cent drop in the currency could translate to a boost to gross domestic product of up to 1.5 percentage points over two years.

 

http://www.theglobeandmail.com/report-on-business/top-business-stories/how-the-canadian-dollars-plunge-will-juice-the-economy/article16362667/

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s