When a big Canadian dollar is devalued, Canadians are hit with higher costs and a slowdown in the Canadian economy.
The devaluation will also impact the country’s economy by driving up inflation, according to a new report by the Fraser Institute.
“The U.S. dollar is a significant currency,” said economist Peter van Dijk.
“Canada’s economy is going to be much less competitive.”
Here’s how the U.K. and other countries might react.
In an article published on Friday, the Fraser’s report said Canada’s economy would shrink 2.6% in 2017 and 6.6%, 2018, if the U-K.
were to lose its dollar-denominated status.
That would mean a 7.4% decline in gross domestic product and a 1.6 percentage point drop in employment.
The Canadian dollar has fallen by over 60% since 2004, when it was about $1.25.
The Fraser’s analysis is based on economic data from Statistics Canada, the Bank of Canada, and other Canadian government agencies.
It estimates that if Canada were to drop the dollar by one-third, its economy would be 6.2% smaller.
This year’s report is the first to include a detailed breakdown of the impacts of the devaluation, which would affect Canada’s GDP by a range of 0.7% to 6.1%.
The Fraser said it found that a dollar reduction in the U.-K.
would have a negative effect on the economy in six key areas: the value of Canada’s exports, such as oil and other natural resources, the value and quality of the services that Canadians provide, and the competitiveness of the Canadian dollar.
Economists and economists from around the world have been saying for years that Canada’s economic outlook is likely to deteriorate under a drop in the value or quality of its currency, which they say is detrimental to Canada’s export-dependent economy.
Economist Paul Krugman, who served as an economic adviser to Prime Minister Stephen Harper, warned that a reduction in Canada’s dollar would cause the country to lose market share in other markets and make it more difficult for the Canadian government to stimulate its economy.
“I think the Canadian experience of losing its dollar for so long is very well known,” Krugman told the Canadian Broadcasting Corporation on Monday.
“It makes it harder to do the sort of things that will make the economy grow.”
Economists from the University of Toronto and the University in Montreal said the Canadian pound, which is used for most purchases of Canadian products, would be hit hard.
“A drop in Canada could lead to a significant decline in its export earnings and reduce the ability of Canadian companies to raise prices,” the authors of the report wrote.
“This could cause the exchange rate to drop to less favourable levels, and further damage the Canadian export economy.”
The Fraser study said Canada is currently “in the process of reducing the value, and thus the purchasing power, of the U-$K.”
“The dollar is the largest reserve currency in the world, and there is little that can be done to mitigate this loss of purchasing power,” the report said.
“Given the high inflationary pressure Canada has experienced since the 1980s, it is possible that a substantial drop in U-S.
currency might be unavoidable.”
The U.N. and the Organization for Economic Co-operation and Development, which represents the governments of the countries that use the U-.
S. money, have warned that such a devaluation could be disastrous for Canada.
has already called on countries to avoid any currency depreciation that might weaken their currencies.
But the report warned that “some countries might choose to avoid currency devaluations and maintain their currency competitiveness.”
Canada’s foreign policy and economic advisers have also said that a devalued U-R would cause more volatility in the global economy, and could lead governments to tighten fiscal policies.
The report, however, said the government’s position on currency devaluation was not clear.
“There are two ways the government could respond to a currency devalue,” the Fraser said.
The first is to maintain its current currency status and continue to use it to buy goods and services from other countries.
The second is to devalue the Canadian currency to the U -K.
“These are both ways that the Canadian policy team could respond.
Both of these options are less likely than maintaining the status quo,” the study said.
It added that if the government decided to drop its currency status, it could either allow a rise in the currency to compensate for the devaluations, or it could reduce the currency’s value, in which case the currency would likely remain relatively stable.
The study said if the Canadian decision to devaluate was made, it would be difficult to predict whether the devalued currency would affect Canadian exports.
Economies are more sensitive to currency fluctuations than they are to inflationary pressures.
In addition, the study