If the government even inside central banks – on matters such as the will not, or cannot, intervene, an inept central bank significance of money, the role of the exchange rate, could induce doubts that the goal will be achieved, and the level of a medium-term “neutral” policy and the conforming actions that make an order rate. [...] So the period from the mid-to-late 1930s – during which the Bank of Canada was While independence and accountability in created (in 1935) and nationalized (in 1938) – formulating and implementing monetary policy are seems a good starting point for a search for elements familiar topics among central-bank watchers, the of a Canadian monetary order in the presence of a theme of a regime’s durability [...] The House of Commons voted to declare the control over mandated bank reserves, the Bank of post of governor vacant, and though the bill failed Canada’s major effort in the 1950s to foster the in the Senate, Governor Coyne resigned. [...] Later dubbed the doctrine of “dual in the 1960s responsibility,” the resulting clarification gave the Bank scope to formulate and implement policy, The regime in the 1960s contrasted with its subject to the minister of finance’s ability to exercise predecessor in several ways. [...] After the Bank money-market context for the bank’s operations was responded with sharply higher short-term rates, the complicated, however, by the heavy government stock of money and nominal spending dropped, and borrowing of the period, and generally turbulent the economy went into its second severe recession in conditions – evident, for example, in the volatility of a decade.6 realized short-ter