The Future of the Canadian Currency Union: NAFTA and Quebec Independence

  • Thomas J. Courchene
  • Marc-Antoine Laberge
Part of the ZEI Studies in European Economics and Law book series (ZEIS, volume 1)

Abstract

Research based on the operations of Canadian federalism has frequently provided valuable insight into the likely workings of European Monetary Union (EMU). For example, Courchene (1993) focussed on the implications of unrestricted provincial borrowing on the ability of the Bank of Canada to pursue overall price stability, with implications for the Maastricht debt/deficit guidelines; Bayoumi and Masson (1998) show that Canadian fiscal policy is more effective in cushioning provincial fiscal shocks than is provincial stabilization policy, providing an argument for expanding the fiscal policy role at the EU level; and Hanson and Waller (this volume) demonstrate that, thanks to Canada’s branch-banking system, savings and investment are uncorrelated across Canada’s provinces/regions which, in turn, leads the authors to recommend that European-wide branch banking might be an important ingredient in achieving fuller financial integration under the Euro.

Keywords

Monetary Policy Central Bank Monetary Union Currency Area European Monetary Union 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2000

Authors and Affiliations

  • Thomas J. Courchene
    • 1
  • Marc-Antoine Laberge
    • 1
  1. 1.Queen’s UniversityKingstonCanada

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