Rising Canadian Dollar, some questions.

CSL · Post by **CSL** » Thu Oct 21, 2004 12:13 am

I've got some questions about the value of our dollar in comparision to the American equivalent.

In the past two years or so it's risen from around 60'ish cents American to now around 80 cents American. However I see basically NO drop in prices to show for this. I would expect that since our money is valued higher that you know.........i'd get a little bit more for it. But I don't see that happening and am wondering why thats happening.

Can any of our amateur or not so amateur economists explain this to me. Are these corporations just making more money off me?

Boudreaux · Post by **Boudreaux** » Thu Oct 21, 2004 12:39 am

The only way you'd see a drop in prices is on goods imported directly from the U.S. The value of Canadian currency relative to the dollar, Euro, or yen has no bearing on any good or service produced within the country. Even when the strength of the Canadian dollar increases, foreign exporters can always raise their prices to compensate.

And here I am exposing my hideously woeful economic knowledge for any and all to pick apart.

LordMortis · Post by **LordMortis** » Thu Oct 21, 2004 8:46 am

If it's of any consequence, the price of stuff (except fast food for some reason) here has been going up pretty consistantly.

Post by **FishPants** » Thu Oct 21, 2004 10:47 am

I don't know the answer to your question, but I do know I am getting some fantastic deals on Ebay from American sellers! Makes a big difference these days.