Mr. Speaker, I thank the member for Drummond for her excellent question.
In fact, when we look at the evolution of monetary policy since 1950, the independence of the Bank of Canada's policy is highly suspect. Since 1950, almost 100 basis points, or 1% in terms of Canadian interest rates, have been added to American interest rates.
In other words, each time the U.S. Federal Reserve Bank makes interest rate decisions, the Bank of Canada follows suit. That is entirely natural because we are in lockstep with the American economy. There is capital circulating at the speed of lightning, and increasingly freely. Given Canada's weaker performance compared to the United States, more money may leave the country if there is a difference between Canadian and American interest rates.
There was 1996-97, when the Bank of Canada boasted that it operated independently from American monetary policy, when Canadian interest rates were over 1% lower than American rates. What was the result? The Canadian dollar took a nosedive, made even worse by the Asian crisis.
Apart from 1973, when the Bank of Canada made a decision completely unconnected with the U.S. Federal Reserve Bank, this was the only such occasion.
In the circumstances, therefore, any talk about the independence of the Bank of Canada is complete nonsense. The Bank of Canada is not independent.
We had another example of this as recently as August and September. The president of the U.S. Federal Reserve Bank lowered American interest rates by 100 basis points. Fifteen minutes later—not one or two days, not one week, but 15 minutes later—Mr. Thiessen, the governor of the Bank of Canada, lowered Canadian rates by exactly the same amount. We are continually following the evolution of American monetary policy. A common currency for the three Americas, or even an international currency, would not be such a great loss of autonomy.