The big difference, as you pointed out, between 1960 and today is that we have much more movement of capital today than we had in the 1960s. But capital does not play an important role in the Dutch disease mechanism. The mechanism was operating probably in the 16th century, 50 years ago, and it is operating now and it will in the future.
Simply, when you have a very rich resource you are exploiting, that will increase the real exchange rate of the economy. It will make the other sectors of the economy that export on the international scene.... I am not talking about the same sector the other person was talking about; I'm talking about the exporter of goods and services in the rest of the world. With whatever we have—mobility of capital, labour mobility—the mechanism is operating.
I am not saying this is bad for Canada; I am saying this is bad for the sector of the economy that exports manufacturing goods to the rest of the world.