Energy, the Exchange Rate, and the Economy

This paper describes potential benefits from Canada''s expanding oil sands production, higher energy exports, and further improvements in the terms of trade. Contrary to the previous Canadian exchange rate literature, this paper finds that both energy and nonenergy commodity prices have an influence on the Canadian dollar, and some upward pressure on the exchange rate would therefore be expected. Model results suggest, however, that the impact on other tradable goods exports is limited.Commodity prices;Exchange rates;Oil production;exchange rate, oil sands, real exchange rate, crude oil, natural gas, oil and gas, oil exports, real effective exchange rate, effective exchange rate, exchange rate appreciation, gas exports, gas prices, oil supply, gas production, natural gas prices, national energy, conventional oil, net oil exports, current account balance, greenhouse gas, oil market, methane gas, foreign exchange, dollar exchange rate, crude oil production, oil fields, oil reserves, oil prices, oil recovery, foreign exchange earnings, natural gas ? production, gas ? production, equilibrium exchange rate, pipeline capacity, oil export revenues, petroleum imports, oil & gas, exchange rate level, multilateral exchange rate, exchange rate literature, movements in exchange rates, real exchange rates, oil market conditions, exchange earnings, gas reserves, demand for gas, greenhouse gas emissions, oil refineries, economic theory, higher oil prices, spot price, exchange rate adjustment, geological survey, gas market, real exchange rate appreciation, gas emissions, opec, oil shocks