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Strong Fundamentals, Weak Currency: The Paradox Of The Canadian Dollar?

MARKET VOICE

John Johnston, chief economist (Americas) at RBC Dominion Securities looks at the seeming contradictions inherent in Canada and its currency.

Canada’s economy and financial markets were buffeted by virtually every form of pestilence to come along in the 1990s as the nation worked through a series of fundamental structural changes.

From the restructuring of the manufacturing sector and the crushing of inflation in the early 1990s to the fiscal restructuring of the mid-to-late 1990s, Canada turned

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