Energy, the exchange rate, and the economy
Subtitle: macroeconomic benefits of Canada's oil sands production
By: prepared by Tamim Bayoumi and Martin Mühleisen.
Contributors: Mühleisen, Martin.; International Monetary Fund. Western Hemisphere Dept.
Series: IMF working paper -- WP/06/70
Publisher: International Monetary Fund, Western Hemisphere Dept.
Published: 2006
Place of publication: [Washington, D.C.]
Language: eng
Number of pages: 21
Subjects: Foreign exchange rates -- Canada -- Econometric models.; Oil sands -- Canada -- Econometric models.; Balance of payments -- Canada -- Econometric models.; Power resources -- Economic aspects -- Canada -- Econometric models.
Description: This paper describes potential benefits from Canada's expanding oil sands production, higher energy exports, and further improvements in the terms of trade. Contrary to the previous Canadian exchange rate literature, this paper finds that both energy and nonenergy commodity prices have an influence on the Canadian dollar, and some upward pressure on the exchange rate would therefore be expected. Model results suggest, however, that the impact on other tradable goods exports is limited.
Notes: "March 2006."

Includes bibliographical references (p. 20-21).

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