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The Limitations of Power: Exchange Rates and Western Economies in the PostWar Era. This essay will argue the reality of exchange rates in the modern world is much more complex than popular wisdom would suggest. Through a discussion of the history of exchange rates in the postwar era - from the fixed rates established at Bretton Woods to the flexible rates of today - it will be seen that exchange rates are one of the most complex features of modern economics. As the Canadian experience demonstrates, control of the exchange rates is beyond the power of governments to significantly influence in the long term. Indeed, given the complexities of the relationship between exchange rates and market forces, exchange rates are a feature of modern economics that defy easy analysis and prediction. 6 pgs. Bibliography lists 2 sources.
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