Factors That Trigger the Decline in the Canadian Dollar Against america DollarFactors That Trigger the Decline in the Canadian Dollar Against america Dollar

Factors That Trigger the Decline in the Canadian Dollar Against america Dollar

 The Canadian dollar has got declined by over 30 % versus america dollar,

since it had been at its highest in 1970. The reason behind this is mainly the next factors: the

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Quebec factor, the inflation factor, the efficiency factor, the progress in government and taxes

factor, and the commodity price factor. All of these get together to bring us from what the

Canadian dollar is worth when compared to U.S. dollar today.

The Quebec factor is partly in charge of the decline. “It can be no coincidence that the

Canadian dollar begun its descent to 69 cents in November 1976.”¹ That was the month in which

the Parti Quebecois shocked political observers by earning the Quebec provincial election. It

was the first, and still only, get together explicitly focused on separation to assume the reins of power

in Quebec City. “While it really is generally agreed that there surely is a risk premium built into the Canadian

dollar because of the risk of separation, no person believes that danger is responsible for the

whole, and even the mass, of the currency's decline.”²

The Canadian dollar is much lower as a result of separation as a result of what happened

during

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