The Canadian Dollar, 1971-76: An Exploratory Investigation of Short Run Movements / Charles Freedman.

Format:

Book

Author/Creator:

Freedman, Charles.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0380.

NBER working paper series no. w0380

Language:

English

Subjects (All):

Econometric models.

Econometrics.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Canadian Dollar, 1971-76

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1979.

Cambridge, Massachusetts : National Bureau of Economic Research, 1979.

Summary:

This paper examines the movement of the Canadian dollar over the 1971-76 period. Although Canadian prices increased substantially more than U.S. prices over this period, there was no tendency for a systematic depreciation of the Canadian dollar. To explain this phenomenon requires the introduction of other factors into the exchange rate equation. Among the variables that proved significant are the Canadian terms of trade, measures of long-term borrowing, the relative cyclical position of Canada and the United States, and the market's errors in forecasting the current account balance. When used together with relative prices, these variables track the movement of the Canadian dollar very satisfactorily over the period.

Notes:

Print version record

August 1979.