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What price parity?

Published Wednesday, October 03, 2007

For the first time since 1976, the Canadian and U.S. Dollars are on par with each other. While the U.S. economy has been lagging, the Canadian economy, bolstered by increasingly strong prices for exports, has been on an upswing. Bob Costello, chief economist for the American Trucking Assns. (ATA), said that having the currencies at par will be a double-edged sword. While it may suppress the volume of imports (or at the very least, keep the level stagnant), it is likely to increase U.S. exports, as these goods will become more desirable in other countries ...

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