Money talk

Phenomena like the recent stock market turmoil and our dollar's sharp decline always prompt major discussions on how such events come about. Experts and non-experts alike wonder how all of it could have been avoided.

After years of debate more often steeped in political than economic considerations, EEC countries have come up with their own solution: a single currency. The new European Central Bank has already been set up and the euro will be launched officially on January 1. In three years, the euro will start circulating, and six months later it will fully replace European Economic and Monetary Union currencies.

Alexandre Baril is a Canadian CA posted in the London office of Deloitte & Touche. From there, he has witnessed the debate surrounding the creation and introduction of the new currency. In "No small change" (p. 26), he looks into the pros and cons for the economies of EMU members and Europe in general. He also explains the likely impact of the common currency on this part of the world.

It will be interesting to monitor the euro experience in the context of NAFTA and the new round of constitutional debates that the upcoming election in Quebec is sure to spark.

Our cover personality also has ties to London. When he was managing partner of Poissant Thibault KPMG, Charles-Albert Poissant negotiated a partnership between Quebecor and controversial British financier Robert Maxwell -- without the Montreal company losing control or having to guarantee Maxwell's bank loans for the purchase of Donahue.

Poissant doesn't fit the traditional picture of a CA, writes Guy Paquin in "Going against the grain" (p. 20). This merger and acquisitions specialist is more entrepreneur than auditor, and has spent most of his career ensuring the growth of his firm and his clients. But he finally gave in to the entreaties of his long-time client and friend Pierre Peladeau and joined Quebecor as chairman of the board and CEO of Donahue. Eleven years later, he succeeded Peladeau himself as chairman of Quebecor.

Telecommunications companies have been waging a ruthless war for the long-distance market for several years. And it's not over yet. Internet companies now offer this service for next to nothing. In "Here come the headsets" (p. 38), Yan Barcelo explores technologies that could eventually reduce the world to a single rate area.

In this month's Performance department, Patricia O'Brien reverses the roles as she looks into the world of financial analysts (CFAs) those who spend so much time analyzing the financial information prepared and audited by chartered accountants. In the rapidly expanding assurance services market, are financial analysts competing with CAs?

As for our regular contributors, Gerard Berube says the Bank of Canada is responsible for the monetary and financial crisis recently gripping the country. Like many economists, he feels the Bank has painted itself into a corner with its relentless battle against inflation, preventing it from adequately confronting the problems that have recently arisen ("Blame monetary policies," p. 11).

Marcel C6te addresses the delicate issue of wage equity, no doubt inspired by the accusations of discrimination levelled against the federal government for its compensation policy. Don't miss "Economic Outlook," p. 60.