Change for a Buck: The Canadian Dollar after Quebec Secession

Clause 6 of the Quebec Government's draft sovereignty bill commits an independent Quebec to use the rest of Canada's currency. But behind this apparently straightforward statement lurks a formidable economic and political agenda.  A central theme in this Commentary is that the ease with which the currency union can be maintained will depend on how easy the task is. Since circular questions do not present any obvious point of entry, it is useful to start by trying to clear away some of the clutter that often surrounds the currency issue to get a clear view of the essential elements.