Carney squashes ‘Dutch Disease’ diagnosis
Canada’s central banker dismissed concerns that Canada is suffering from so-called “Dutch Disease,” saying in a speech to the oilpatch Friday the strength of the country’s resource sector is a “reflection of success, not a harbinger of failure.” Mark Carney, speaking at an economic summit in Calgary, said the logic of Dutch Disease “requires that we undo our successes it order to depreciate our currency.”
Dutch Disease — a phrase that refers to the decline in the manufacturing sector in the Netherlands after the development of its oil resources in the 1970s — has been used to describe the shift from the eastern manufacturing hub to the resource-heavy western province.
“Most fundamentally, higher commodity prices are unambiguously good for Canada,” the Bank of Canada governor said in a speech. Mr. Carney said the decline in importance of the manufacturing sector is “part of a broad, secular trend across the advanced world.”
Mr. Carney also used the Calgary setting to urge the expansion of national pipeline systems and related facilities to better tap into the country’s resources and share them more equally with other parts of Canada. “Eastern Canadian consumer are importing oil and paying the global price,” he said. “New energy infrastructure — pipelines and refineries — could bring more of the benefits of the commodity boom to more of the country.”
Les gauchistes du PQ devront revoir leurs arguments contre l’exploitation des sable bitumineux en Alberta…