Good morning, Mr. Carney. Thank you for being here.
Last week, there were many newspapers reporting that you would not hesitate to intervene if the loonie rose too high against the American dollar. From the comments in La Presse, we get the sense that a strong currency has absolutely no positive impact on export industries or Canada's short-term economic growth.
However, a strong currency does have positive effects. It allows consumers to take advantage of lower prices, because of imports. It allows those travelling to the U.S. to benefit from a favourable exchange rate. It also benefits companies that import equipment, as you know, from the United States or elsewhere in the world. Lastly, it allows Canadian investors who invest abroad to receive a better return on their investment.
Therefore, if you were to intervene, it would also have a negative impact. It would mean creating Canadian dollars to devalue the loonie at the same rate as the U.S. Federal Reserve is devaluing the American dollar. In addition, it is a known fact that, during the Great Depression, competitive devaluation made the crisis worse.
So I want to ask you whether you think a strong dollar has both a positive and a negative side. If so, how will you make a balanced decision that takes all of those effects into account?