Canadian Economic Policy and the Impact of International Capital Flows

The object of this study is to investigate the effects that complete and formal integration of the Canadian with the American capital market would have on the Canadian economy. It is based largely on recent trade statistics, particularly those of the period when the exchange rate floated. In summary, the short- and long-run effects could both be beneficial to Canada. This study is a convenient summary of a longer work by the same authors to be published in 1970. Foreword 5 Contents 7 1. Economic Integration in International Capital Markets 9 2. Adjustment to Disturbances in Canada's Capital Inflows 35 3. The Influence of International Capital Flows on the Effectiveness of Domestic Policy Instruments 54 4. Integrated Capital Markets: A Review of the Implications for Stabilization, Growth, and Commercial Policy 82