Posted by: Sam Carson | 23 September, 2007

Is Canada catching Dutch Disease?

In the 1960s the Netherlands was booming with North Sea oil.  The exports of this resource inflated the Dutch currency so suddenly that other exports, such as manufacturing, was no longer competitive.  Sounds familiar, eh?

It’s called “Dutch Disease” and as the Canadian and American dollar is rubbing shoulders, one has to wonder what effect Alberta’s new resource wealth will have on Ontario’s old manufacturing.

When once we heard: “when the American economy sneezes, Canada gets a cold”, maybe now we see “when the US economy gets a cold, Canada gets Dutch Disease.”

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