Download 4B - Brenda Spotton Visano

AP/ECON 3430 3.0 A
MONETARY ECONOMICS I: FINANCIAL
MARKETS AND INSTITUTIONS
Fall 2016
Topic 4: Foreign Exchange/Session 4B
Course Director:
Prof. Brenda Spotton Visano
© Brenda Spotton Visano 2016
Session 4B - Agenda
• Is it better for Canada to join a Monetary
Union with China?
• Small Group Preparation
• Large Group Speed Debate
• Assessment of Arguments and Decision
© Brenda Spotton Visano 2016
2
1 more Policy Option – Monetary
(Currency) Union
• Why do Ontario and British Columbia share
the same currency but not Canada and China?
• Advantages of a Monetary Union = benefits of
a standard unit of account and common
medium of exchange, and…?
• Disadvantages of a Monetary Union = loss of
national control over policies, financial
markets and institutions, and…?
© Brenda Spotton Visano 2016
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Changing Trade Patterns
Currency
CERI Weights based on
1999-2001 trade data
2015 Trade Data
(Country Imports as %
Total Imports)
U.S. dollar
0.7618
0.6628
Euro
0.0931
0.0968
Japanese yen
0.0527
0.0158
Chinese yuan
0.0329
0.0710
Mexican peso
0.0324
0.0335
U.K. pound
0.0271
0.0199
© Brenda Spotton Visano 2016
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Canada – China Trade
• Government of Canada – Fact Sheet on China
http://www.canadainternational.gc.ca/chinachine/bilateral_relations_bilaterales/China-FS-Chine-FD.aspx?lang=eng
• Canada-China Foreign Investment Promotion and Protection Agreement
(FIPA) in force October 1, 2014 and in place for a minimum of 31 years (to
at least 2045) http://www.international.gc.ca/trade-agreements-accordscommerciaux/agr-acc/fipa-apie/china-chine.aspx?lang=eng
•
•
Hupacasath First Nation led coalition to oppose the Canada’s FIPA with China citing
environmental and native rights concerns around land use and energy (coal, tar
sands production; pipeline construction) (Council for Canadians
http://canadians.org/)
The Canada-China Business Council founding members were Barrick Gold, BMO
Financial Group, Bombardier, Power Corporation of Canada, Manulife Financial,
and SNC-Lavalin.
© Brenda Spotton Visano 2016
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BIRT Canada should create a Monetary
Union with China
• Negative Teams (oppose resolution)
– N1 Group prepare primary supporting arguments
– N2 Group anticipates opposing arguments and
prepares rebuttals
• Affirmative Teams (agree with resolution)
– A1 Group prepare primary supporting arguments
– A2 Group anticipates opposing arguments and
prepares rebuttals
• Judging Team (neither supports nor opposes resolution)
assesses merits of evidence presented
© Brenda Spotton Visano 2016
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