That Darned Fine Print: The Dollar-Loonie Exchange Rate
Note from KPC friend, RL:
Maybe economists like you can make sense of what is "normal" price
appreciation and what is "abnormally quick" changes in exchange rates?
The markets responded sharply in the first day of trading after these
comments, but then traders realized that - whether or not the pace of
the change was in line with historical norms - the equilibrium price was
near where the dollar-looney traded at on Friday!
I wonder whether the current stock market volatility is also "abnormal"
since, from what I can tell, it also is not consistent with historical
Does the leader of the Bank of Canada not read the fine print that says
that historical performance is not indicative of future returns?