Monetary policy hurting Canada, Duceppe says

[tuvor]

Ottawa's economic policy 'ridiculous'

QUEBEC CITY -- Bloc Québécois Leader Gilles Duceppe is calling for debate on a common currency in the Americas after the majority takeover of Quebec-based Domtar Inc. by the U.S. forestry giant Weyerhaeuser Co.

Mr. Duceppe said Canadian monetary policy encourages the foreign takeover of Quebec and Canadian companies by penalizing companies that rely heavily on exports.

"We have this ridiculous economic policy that when exports grow, the economy gets stronger and the value of our currency increases. Then exports decline and things get worse. It's always like a yo-yo," Mr. Duceppe said yesterday.

A debate on monetary policy is needed, he said, because the Bank of Canada is so closely tied to U.S. Federal Reserve policies that it has lost its ability to influence independent economic policies at home.

http://www.theglobeandmail.com/servlet/story/LAC.20060825.BLOC25/TPStory/National