Bombardier head criticizes Bank of Canada

The head of Bombardier Laurent Beaudoin has strongly criticized the Bank of Canada for allowing the Canadian dollar to reach 91 cents US .
According to a story in this mornings Globe and Mail Mr. Beaudoin blasted the Bank for the rapid rise in the exchange value of our dollar blaming the Bank for not taking action to slow the appreciation in the currency. De facto what M. Beaudoin is saying is that the Bank of Canada has raised interest rates too quickly and too high in response to their mistaken impression that we face inflation rather than slow growth and unemployment in manufacturing.
Beaudoin has also raised the worrisome prospect that manufacturers will shift their production out of Canada to lower cost locations. This should set off alarm bells in Òttawa. David Dodge the Governor of the Bank continues to insist that all is well and "marvelled" at how well   manufacturing is adjusting to the new exchange rate.

I have no doubt that M. Beaudoin is correct to worry and that our governor is living in an unreal world mired in the 1970s and 1980s   rather than being au courant with conditions in 2006. We shall see how long it takes for the new realities to sink in.