All of these factors put upward pressure on the Canadian dollar and made it difficult to control the domestic monetary expansion. With some reluctance, the government was forced to undertake a more decisive and, at the time, revolutionary action.
5  6  Although Canada was no longer on the gold standard and might have used an exchange rate depreciation to help stimulate the economy, it had a large amount of foreign debt outstanding and a high priority was put on maintaining a stable exchange rate.