Well, I guess the question is what will happen when Not-Canada manages to achieve stable prices while Canada lets theirs "run hot." It seems to me the rest of

Well, I guess the question is what will happen when Not-Canada manages to achieve stable prices while Canada lets theirs "run hot." It seems to me the rest of the world would make sure to hang on to Not-Canadian currency while being very willing to swap Canadian currency for everything else, which would increase the supply of Canadian currency, causing further Canadian inflation. Or is the author suggesting we should somehow convince the entire world to let their currencies "run hot"? What if a few holdouts went rogue and (gasp) maintained a relatively low rate of inflation for their currency? I can reason out why a low and steady rate of inflation might cause folks to keep money moving around in an economy, but a do-nothing approach seems silly and unworkable over the long term on a global scale.