Cover -- CONTENTS -- LIST OF CHARTS -- LIST OF TABLES -- PREFACE -- CHAPTER 1: INTRODUCTION -- 1.1. Aim and Scope of Study -- 1.2. The Structure of the Pre-1914 Canadian Financial System -- CHAPTER 2: MONEY AS A DESTABILIZING FORCE -- 2.1. Real and Monetary Views of the Canadian Business Cycle -- 2.1.1. Real Channels of Transmission -- 2.1.2. Monetary Channels of Transmission -- 2.2. The Balance of Payments as a Source of Variation in the Canadian Money Stock -- 2.2.1. Conceptual Problems -- 2.2.2. Viner's Analysis of the Price-Specie-Flow Mechanism -- 2.2.3. A Critique of Viner's Analysis -- 2.2.4. The Influence of Monetary Policy -- 2.3. Active or Passive Money? -- 2.3.1. Direct Monetary Effects -- 2.3.2. Indirect Monetary Effects -- 2.4. Plan of Study -- CHAPTER 3: THE SOURCES OF VARIATION IN THE MONEY STOCK -- 3.1. Cyclical Patterns of the Balance of Payments -- 3.1.1. The Canadian Balance of Payments: General Remarks -- 3.1.2. Overall Balance-of-Payments Surplus -- 3.1.3. Current-Account Surplus -- 3.1.4. Residual Inflows -- 3.2. Sources of Variation in the Monetary Base -- 3.2.1. The Significance of Discretionary Monetary Policy -- 3.2.2. The Sources of Cyclical Variation in the Monetary Base -- 3.3. The Relationship between the Money Stock and the Monetary Base -- 3.3.1. The Cyclical Attributes of the Money Stock -- 3.3.2. The Sources of Variation in the Money Stock -- 3.4. The Relationship between the Money Stock and International Gold Flows -- 3.4.1. Gold Flows as a Means of Settling Payments Imbalances -- 3.4.2. Cyclical Attributes of Monetary Gold Flows -- 3.5. Summary and Further Comments -- CHAPTER 4: BANK RESERVE MANAGEMENT AND THE CANADIAN BUSINESS CYCLE: A THEORETICAL ANALYSIS -- 4.1. The Monetary Sector of the Model -- 4.1.1. Demand for Base Money -- 4.1.2. Supply of Base Money -- 4.2. The Real Sector of the Model.

4.2.1. The Goods Markets: Principal Assumptions -- 4.2.2. The Goods Markets: Structural Equations -- 4.2.3. Bond Market -- 4.3. Consistency of the Model with the Stylized Facts -- 4.3.1. Determination of Endogenous Variables -- 4.3.2. Consistency with the Stylized Facts: Short-Run Effects of Foreign Cyclical Disturbances -- 4.3.3. Consistency with the Stylized Facts: Long-Run Effects of Foreign Cyclical Disturbances -- 4.4. Summary and Conclusions -- CHAPTER 5: THE CYCLE-TRANSMISSION PROCESS -- 5.1. The Cyclical Attributes of Canadian Interest Rates and their Implications for Bank Reserve Behaviour -- 5.1.1. Data Problems -- 5.1.2. Montreal Call-Loan Rate -- 5.1.3. Other Interest Rates -- 5.2. Base-Money Demand and Reserve Ratios: Econometric Estimates -- 5.2.1. Base-Money Demand -- 5.2.2. Reserve Ratios -- 5.3. Bank Reserve Management and the Cycle-Transmission Process -- 5.3.1. The Cycle-Transmission Process: A Simplified Analysis -- 5.3.2. The Cycle-Transmission Process: Implications of Non-Monetary Capital Flows -- 5.3.3. Consistency of the Model with the Stylized Facts: Significance of Feed-Back Effects -- 5.4. A Monetary View of the Cycle-Transmission Process: Summary and Further Comments -- 5.4.1. Summary -- 5.4.2. Further Comments -- CHAPTER 6: THE CRISIS OF 1907 -- 6.1. A Chronicle of the Crisis -- 6.2. Internal and External Causes of the Crisis -- 6.2.1. Internal Causes -- 6.2.2. External Causes -- 6.3. Seasonal Movements in the Canadian Balance of Payments -- 6.3.1. The Seasonal Adjustment Mechanism: The Evidence -- 6.3.2. The Seasonal Adjustment Mechanism: An Interpretation -- 6.4. The Causes of the 1907 Crisis -- 6.5. Summary and Conclusions -- CHAPTER 7: MONETARY, BUDGETARY AND DEBT MANAGEMENT POLICIES OF THE DOMINION GOVERNMENT -- 7.1. Monetary Policy -- 7.1.1. Antecedents.

7.1.2. Discretionary Monetary Policy and the Constraints of the Gold Standard -- 7.1.3. Cyclical Movements in the Uncovered Stock: An Interpretation -- 7.1.4. The Transition to an Automatic System -- 7.2. Impact of the Dominion Government Budget Deficit on the Balance of Payments and the Monetary Base -- 7.2.1. The Budget Deficit and Borrowing: The Data -- 7.2.2. Cyclical Characteristics of the Budget Deficit and Foreign Borrowing -- 7.2.3. Significance of Foreign Borrowing as a Source of Cyclical Variation in the Monetary Base -- 7.3. Summary and Conclusions -- CHAPTER 8: EPILOGUE -- 8.1. The Operation of the Canadian Gold Standard: Summary and Conclusions -- 8.2. Comparison with Other Countries -- 8.2.1. Destabilizing Capital Flows -- 8.2.2. Adherence to the Gold-Standard Rules of the Game -- 8.2.3. Destabilizing Movements in the Money Multiplier -- 8.2.4. Concluding Remark -- APPENDIX A: REVISED ESTIMATES OF THE PRE-1914 CANADIAN BALANCE OF PAYMENTS -- A.1. Monetary Rows: Gold -- A.2. Monetary Rows: Secondary Reserves -- A.3. Balance of Payments: Current Account, Overall Surplus, and Residual Inflows -- A.4. Net Exports of Non-Monetary Gold -- A.4.1. Exports of Unrefined Gold -- A.4.2. Net Exports of Refined Gold for Non-Monetary Purposes -- A.4.3. Net Exports of Gold Bullion -- A.4.4. Estimation of Net Exports of Non-Monetary Refined Gold -- A.5. Net Exports of Refined Silver for Non-Monetary Purposes -- APPENDIX B: THE FOREIGN BRANCHES OF THE CANADIAN CHARTERED BANKS: STATISTICAL PROBLEMS -- B.1. Development and Characteristics of the Banks' Foreign Business -- B.2. Monetary Gold: New Estimates -- B.2.1. Description of New Data Sources -- B.2.2. The Curtis Data on Bank Gold: A Critical Appraisal -- B.2.3. Comparison of New Estimates with Curtis Data -- B.3. Secondary Reserves: Revised Estimates -- B.3.1. Call Loans Abroad.

B.3.2. Net Claims on Foreign Banks -- B.3.3. Comparison of New Estimates with Curtis Data -- B.4. Structure and Significance of the Canadian Banks' Foreign Call-Loan Business -- B.4.1. Geographical Distribution of Call Loans Abroad -- B.4.2. Role of the Canadian Banks in the New York Call-Loan Market -- APPENDIX C: DIVISION OF REFERENCE CYCLE INTO STAGES -- APPENDIX D: SOLUTION OF THE DYNAMIC MODEL OF CHAPTER 4 -- D.I. Steady-State Effects of an External Cyclical Force (v = sin t) -- D.2. Long-Run Effects of Domestic Monetary Disturbances -- APPENDIX E: QUARTERLY DATA ON CANADIAN BOND YIELDS -- E.I. Implicit Yield on Bonds Issued by the Dominion, Provincial and Municipal Governments -- E.2. Implicit Yield on Canadian Corporate Bonds -- APPENDIX F: FOREIGN BORROWING BY THE DOMINION GOVERNMENT: FURTHER ESTIMATION PROBLEMS -- F.1. Bank Holdings of Dominion Government Bonds -- F.2. The Simon Estimates -- BIBLIOGRAPHY.