Look at the data in Figure XXXXXXXXXXWhere do you see devaluations and revaluations of the franc against the mark? In the late 1980s Canadian economists argued that the high interest rate policies of...

Look at the data in Figure 34-11. Where do you see devaluations and revaluations of the franc against the mark? In the late 1980s Canadian economists argued that the high interest rate policies of the Bank of Canada weren’t just causing high unemployment—they were also making it hard for Canadian manufacturers to compete with the United States. Explain this complaint, using our analysis of how monetary policy works under floating exchange rates.