Monday, February 18, 2008

The dollar is weak, buy American 

Check out the picture at EclectEcon to see how much further the Canadian dollar is going these days.

Maybe this means a continuation of the trend of our trade deficit falling from 5.7% of GDP in 2006 to 5.1% in 2007? Exports up 12.2% last year, imports up 5.9% (which with rising oil prices is pretty indicative of switching to domestic production.) The decline in the dollar has to have an effect at some point.