As someone who works for an exporter and travels somewhat regularly in the US, I have been fairly conscious of the exchange rate for some time - and I would have some observations:
- our American friends had a lot of inflation in the last couple of years themselves. Some of it was the recession really beat down prices, but I have seen a lot of the things I used to bring back go up substantially
- I had noticed that Canadian prices had been shielded from inflation for quite some time because the rising dollar allowed that to happen
- in the end inflation will happen, and it shouldn't be surprising we see it eventually. Drops in the dollar will magnify it, rises in the dollar conceal it, but only for a time. It's a matter of timing as to the ups and downs in market demand and the economy that dictates how much we see and when.
No tax is popular, but I'd rather a carbon tax (ie- one that I can avoid by reducing consumption, and that encourages innovation) than income tax.