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Now that the productivity gap with the U.S. has been officially confirmed by our government and financial gurus, we have the ongoing debate if to drop the loonie in favour of the U.S. dollar; in the meantime, journalist Sandra Rubin of the National Post provides us with surveys' results about the future of the loonie, and the possible future values against the U.S. dollar.

These speculations about the loonie are enough to realize that our financial system is inherently volatile within a global Free Market characterized by our free choice "will be Pespi or Coke."

It is interesting to notice that David Dodge, the governor of the Bank of Canada, said that the benefit of a separate Canadian dollar could diminish within a generation as North America's economies integrate.

Dodge's loonie positioning comes after few months he has been voicing the rallying of corporate Canada to overcome the U.S. productivity gap and the U.S. standard of living within the next 15 years. Dodge's smartness is overwhelming, in fact, with his hinting that the loonie can be dropped he is suggesting that Canada doesn't have to wait 15 years to overcome the U.S. productivity gap; with the dropping of the loonie our economies would be integrated and we would immediately enjoy the same level of productivity and living standard of the U.S.

Reference

Drop loonie, 45% say in business poll. Executives split on currency's future, but blame its weak present on productivity lag. Sandra Rubin, July 16, 2001 National Post http://www.nationalpost.com/home/story.html?f=/stories/20010716/620169.html