02175cas a2200253 a 4500 AALejournalIMF001478 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451974942 1934-7456 BD-DhAAL BD-DhAAL Arora, Vivek. Economic Integration and the Exchange Rate Regime : Some Lessons from Canada / Vivek Arora, Olivier Jeanne. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (21 pages) IMF Policy Discussion Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The Canadian experience with a floating exchange rate regime can shed some light on the question of whether A question of current interest in many parts of the world is whether with growing economic integration among groups of countries makes a fixed exchange rate, or even a common currency, becomes more desirable. This paper looks at the lessons that one may draw from tThe Canadian experience, with a floating exchange rate regime, especially since the inception of the 1989 U.S.-Canada Free Trade Agreement, suggests. We find that exchange rate flexibility has not prevented economic integration between Canada and the United States from increasing substantially, during the 1990s, and has played a useful role in buffering the Canadian economy against asymmetric external shocks. A fixed exchange rate thus does not seem to be a prerequisite for economic integration. It may, however, yield substantial have benefits for some countries that lack monetary credibility or that may be tempted by self-destructive beggar-thy-neighbor policies. Mode of access: Internet Jeanne, Olivier. IMF Policy Discussion Papers; Policy Discussion Paper ; No. 2001/001 Full text available on IMF http://elibrary.imf.org/view/journals/003/2001/001/003.2001.issue-001-en.xml IMF e-Library