How does a government-supported health care system affect that country’s currency exchange rate?
Posted January 11th, 2010 by admin 1 Comment »
Craig asked:
For example, if the Canadian government were to decide not to provide national health care to its citizens, mandating that employers pay part or all of the premiums instead, what would happen to the value of the Canadian dollar, and, therefore, the competitiveness of Canadian exports to the US? My econ professor brought this up last week and I’ve been noodling over it ever since. Would this weaken or strengthen the Canadian dollar and why? Thanks much!
For example, if the Canadian government were to decide not to provide national health care to its citizens, mandating that employers pay part or all of the premiums instead, what would happen to the value of the Canadian dollar, and, therefore, the competitiveness of Canadian exports to the US? My econ professor brought this up last week and I’ve been noodling over it ever since. Would this weaken or strengthen the Canadian dollar and why? Thanks much!
