Indeed, many of the arguments that he presented would later appear in his classic essay, “The Case for Flexible Exchange Rates”.8 Although the debate did not have any noticeable effect on policy for the next two years, Friedman’s ideas seem to have influenced official thinking in Ottawa.
The OECD estimates that such measures have the potential to lift growth up to 15% above the current baseline level after ten years. And some of this would be felt instantly, as the expectation of higher incomes tomorrow triggers stronger investment today. 11  Blanchard, OJ and J Tirole (2003), “Contours of Employment Protection Reform”, MIT Department of Economics Working Paper No 03–35.