Not a joke

…as far as I can tell.  From a quite reputable newspaper, here goes:

For 150 years, no country has expressed interest in adopting the Canadian dollar — the poor cousin to the coveted greenback.

But now tiny Iceland, still reeling from the aftershocks of the devastating collapse of its banks in 2008, is looking longingly to the loonie as the salvation from wild economic gyrations and suffocating capital controls.

And for the first time, the Canadian government says it’s open to discussing the idea.

In brief remarks to be delivered Saturday in Reykjavik, Canadian ambassador Alan Bones will tell Icelanders that if they truly want the Canadian dollar, Canada is ready to talk.

But he will warn Icelanders that unilaterally adopting the loonie comes with significant risk, including complete loss of control over their monetary policy because the Bank of Canada makes decisions only for Canadians and the Canadian economy.

Kudos to all of you who had been predicting that.

For the pointer I thank M Kaan, maybe someone is playing an elaborate joke on Bob Mundell here.


Comments for this post are closed