The Canadian Decision to Free the Exchange Rate
Abstract
In Chapter I this paper examines why the flexible rate
system was adopted by the Canadian government. The author
believes that he has avoided involvement in the technicalities of
the Canadian securities market during his appraisal of the
Canadian problem. Chapter II explores the effectiveness in
domestic policies under both fixed and free exchange rate systems
and observes the role of capital mobility. In Chapter III the
author attempts to show that the Canadian decision to free the
rate made monetary policy more effective.