Saturday, August 26, 2006

Canada should keep the loonie

Although the idea of a single currency shared by the United States and Canada is an idea that is not completely without merit, the suggestion that Canada should simply adopt the U.S. dollar is absurd. If Canada did so, Canadians would have no control over the value and supply of their own currency. The U.S. Federal Reserve is not about to share its power with Canada. The only sensible way for our countries to share a currency would be if there were a central bank governed by representatives of both countries. That said, I don't believe that the case has been made that the adoption of a single U.S./Canadian currency has been made. Canada has a robust economy that could suffer by being linked too closely to the U.S. dollar.

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