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6 December 2007December 6, 2007

Domestic prices and the appreciation of the Canadian dollar

Economic Note on a country’s exchange rate appreciation and its consequences

Domestic prices and the appreciation of the Canadian dollar

Canadian consumers believe that they are not getting the full value at the check-out counter of the substantial appreciation in the Canadian dollar during the last five years. An exchange rate appreciation makes exports more expensive and imports less expensive. While this creates a more competitive selling environment for the producers of exportables, at the same time it provides a more favorable environment for consumers and importers.

Link of interest

Media Release:
Why aren’t consumers benefiting from the higher dollar?

Canadian consumers believe that they are not getting the full value at the check-out counter of the substantial appreciation in the Canadian dollar during the last five years. An exchange rate appreciation makes exports more expensive and imports less expensive. While this creates a more competitive selling environment for the producers of exportables, at the same time it provides a more favorable environment for consumers and importers.


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