Thursday, November 29, 2007

Decoupling...My Thoughts

You read a lot in the papers lately about how the Canadian economy is "decoupling" from the American economy. The article then usually goes on to site some numbers about dropping number of imports to the US along with the higher growth rates in Canada. I don't think this should be taken that seriously. For instance, if you looked at growth rates in Texas compared to the rest of the United States there would be time where the Texan economy was doing a lot better than the rest of the country and vis versa. Yet nobody ever says that Texas is decoupling from the United States. It is possible for the Canadian economy to be completely integrated with the American economy and still be growing at a higher rate.

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