TY  - JOUR
AU  - Bordo,Michael D.
AU  - Redish,Angela
TI  - Why did the Bank of Canada Emerge in 1935?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2079
PY  - 1988
Y2  - 1988
UR  - http://www.nber.org/papers/w2079
L1  - http://www.nber.org/papers/w2079.pdf
N1  - Author contact info:
Michael D. Bordo
Department of Economics
Rutgers University
New Jersey Hall
75 Hamilton Street
New Brunswick, NJ 08901
Tel: 732/822-7152
Fax: 732/932-7416
E-Mail: bordo@econ.rutgers.edu

Angela Redish
Dept. of Economics
University of British Columbia
#997 1873 East Mall
Vancouver BC V6T 1Z1 CANADA
E-Mail: anji@econ.ubc.ca
AB  - Three possible explanations for the emergence of the Canadian central bank in 1935 are examined: that it reflected the need of competitive banking systems for a lender of the last resort; that it was necessary to anchor the unregulated Canadian monetary system after the abandonment of the gold standard in 1929; and that it was a response to political rather than purely economic pressures. Evidence from a variety of sources (contemporary statements to a Royal Commission, the correspondence of chartered bankers, newspaper reports, academic writings and the estimation of time series econometric models) rejects the first two hypotheses and supports the third.
ER  -