A market-based exchange rate proved to be useful as a "shock absorber," helping the economy react to shocks more efficiently than a fixed exchange rate. 2  R. Rajan, "The Ebbing Spirit of Internationalism and the International Monetary Fund." The 2006 Krasnoff Lecture, Stern School, New York University (New York, 8 March 2006).
3  After repegging the Canadian dollar in 1962, Canada again chose to float its currency in 1970. For a thorough discussion of the Canadian dollar through the Bretton Woods era, see J. Powell, A History of the Canadian Dollar (Ottawa: Bank of Canada, 2005).