The fall and dramatic rise of the Canadian dollar over the last 12 months is a prime example of the volatility that currency adds to
Q. Why do you think Central Banks might prefer a managed exchange rate system over a fixed or a floating exchange rate? A. Managed exchange
Why Higher Dollar Means Bank of Canada Can Keep Interest Rates Unchanged The Canadian dollar is on a tear, and some think that a correction
We’re migrating some posts from the old economics forum to our blog. This is one from 2007. I have been discussing with my friends on
Q. If a currency falls in value, does the central bank raise or decrease the interest rate to make it gain in value again? A.
User techy246 from our now defunct economics forum posted this question that had a few responses. We’re reposting it here in the blog for your