Quote:
Originally posted by Cowperson+Nov 4 2004, 08:39 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Cowperson @ Nov 4 2004, 08:39 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-nfotiu@Nov 4 2004, 08:27 PM
I would say a rising dollar is not a particularly good thing for Canadians, especially with hockey teams not playing! Only really good for Cdn's travelling to the US.
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There's a point where it probably isn't good but it does force certain Canadian industry to get off the crutch of a low dollar and invest in becoming more innovative and competitive.
Cowperson [/b][/quote]
I'd say it passed that balance a long time ago. The actual number is meaningless. a 1-1 CDN-US dollar wouldn't necessarily mean the currencies were on par, it is like saying google's stock is higher than microsofts because it is priced at 180, while MS is 25. Numbers are arbitrary. Prices and wages correct for about the average over a long period of time. There are lots of short term and medium term pressures either way, but the real value these days is probably somewhere around 75 (just guessing from my comparison of wages and prices between the 2 countries). Anything over that, and Canadian exporters are at an absolute disadvantage. Anything less than that, and yeah you are right, they could get lazy for the short term anyway. The good thing is that Canadians workers are getting a bit of a raise if they are comparing their wealth to their American counterparts.
Really though, large rises and falls that occur faster than everything can correct itself creates these advantages and disadvantages.
