Economist Jim Stanford questions why it took so long for the over valuing of the Canadian dollar to end, given the consensus that the drop in its value is a good thing.
In a blog post, he points out that the over valued dollar has resulted in the loss of 500,000 manufacturing jobs and a 50% drop in tourists from other countries. In spite of this, the Canadian government did not follow the example of countries like Japan, Norway, Australia and Switizerland and manage exchange rates.
While the Bank of Canada now feels the high dollar hurts exporters, this is a recent development. As late as August 2012, former Bank of Canada Governor, Mark Carney, argued that Canada's “ strong currency explains only about 20 per cent of our poor export performance.”