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OTTAWA — It would appear the dreaded “Dutch Disease” was really much to do about nothing.

The dire diagnosis that a strong Canadian dollar — boosted by high commodity prices — would deliver a lethal blow to this country’s manufacturing sector was greatly exaggerated, according to a new study.

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One of the hoariest concepts to muddy the public debate in recent years was that Canada suffered from Dutch Disease — the idea that surging revenue from resource exports lifted the loonie to levels that stifled manufacturing.

In a new study released Wednesday by the Macdonald-Laurier Institute, I argue that Canada does not suffer from Dutch Disease. Whatever hurdles the higher Canadian dollar presented, manufacturers have overcome them.



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