Currency wars have been missing during this crisis, but it only takes a spark, writes Kevin Carmichael in the Financial Post. The article warns that the Bank of Canada may develop a reputation for caring more about the exchange rate than it says it does, saying that policy-makers may have been sending a signal that they thought the dollar was getting too strong.
But Alberta Central’s Chief Economist Charles St-Arnaud sees “no big misalignment of exchange rates,” saying “there is no big concern about where we are.” Still, the situation bears watching, according to Carmichael.
Read the full article here.