Energy, the Exchange Rate, and the Economy: Macroeconomic Benefits of Canada's Oil Sands Production

Author/Editor: Bayoumi, Tamim ; Mühleisen, Martin
Publication Date: March 01, 2006
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: 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.
Series: Working Paper No. 06/70
Subject(s): Balance of payments | Canada | Trade | Exports | Commodity prices | Exchange rates | Oil production

Author's Keyword(s): Balance of payments | energy trade | exchange rate models | macroeconomic modeling | Canada
Publication Date: March 01, 2006
ISBN/ISSN: 0 / 1934-7073 Format: Paper
Stock No: WPIEA2006070 Pages: 23
US$15.00 (Academic Rate:
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