war ended, the government maintained the fixed rates and exchange controls for some years. However, that was balanced out by an unofficial exchange rate established by US markets, which triggered an extensive debate about the merits of a policy of floating exchange rates. Floating rates: 1950–1962 In 1950, the federal government decided to switch to a policy of floating exchange rates, while maintaining the restrictions on currency exchanges. The rationale was a concern about an increase in inflation if the Canadian dollar continued to be fixed against the US dollar, as was required by the Bretton Woods agreement. The decision to switch to a floating rate called into question the need for restrictions on currency exchanges, and those restrictions were gradually lifted during 1951. At the end of 1951, the exchange restrictions were abolished entirely. Canada stayed on a floating exchange rate for twelve years, in spite of urgings from the International Monetary Fund to return to the fixed rate system under Bretton Woods. Fixed rates: 1962–1970 In 1961, a major policy disagreement occurred between the Governor of the Bank of Canada, James Coyne, and the government of Prime Minister John Diefenbaker. The Governor favoured keeping the exchange rate floating, coupled with a restrictive monetary policy. He came under criticism for that approach, since Canada was going through a period of high unemployment and low inflation. The Diefenbaker government favoured a return to fixed rates within the Bretton Woods system and a more expansionary monetary policy. The dispute escalated until Coyne resigned his position. The government introduced legislation to provide for a fixed rate, within a permitted range. Both the economic situation and the political controversies contributed to downwards pressure on the dollar. The Canadian government and the Bank of Canada negotiated with other countries and central banks for supports for the dollar. The government found it necessary to intervene in the money markets in support of the dollar. Floating rates: 1970 onwards In 1970, rising inflation and inflow of foreign exchange led to pressures on the dollar. The government was concerned that massive and expensive interventions in the foreign exchange market would be required to maintain the dollar within the fixed rate band. In May 1970, the government announced that it would allow the dollar to float. Although the decision was criticised by the International Monetary Fund, which continued to favour the Bretton Woods approach, within three years all