But with growing confidence in the functioning of currency markets, capital controls were essentially eliminated in 1951, well before this occurred in most other countries. Moreover, the elimination of controls and the move to a flexible exchange rate facilitated the development of our domestic financial markets.
And this, along with the floating exchange rate, helped the economy to make the necessary adjustments at a time when large numbers of Canadians were leaving farms and moving into the cities. Now let’s look at 1970, the second time we floated our currency.