Making Money: An Insider's Perspective on Finance, Politics, and Canada's Central Bank

"At the core of any central bank is a governmental licence to print money — an alchemy of such general wonder and fascination that there is no shortage of running commentary." from the Preface

Never a day goes by without matters of monetary policy being covered in the Canadian media. The value of our dollar, turmoil in global financial markets, economic growth vs. inflation, the possibility of a common North American currency. These are issues that constantly preoccupy our national psyche, and are particularly troublesome to a medium-sized, open economy that lives an uneasy coexistence next to the economic behemoth of the U.S.

Although much ink has been spilled over such matters, never before has it come from one so experienced as an insider in one of Canada's most influential, but least understood, institutions. John Crow's illustrious career at the Bank of Canada spanned twenty-one years, culminating in his seven-year term as Governor. In office through years of very controversial monetary policy, he is possibly one of the Bank's best-known governors.

Part memoir, part history, part analysis of major monetary policy issues, Making Money brings to life the inner workings and the politics of the Bank, an institution of central importance to the financial stability of the country. In such activities as determining interest rates and inflation targets, controlling the money supply, and even designing and issuing bank notes, the Bank has a profound effect on the daily life of every Canadian.

Making Money also sheds light on how the Bank functions more broadly in Canadian society: its relationship with the government in general and the Minister of Finance in particular, the crucial questions of its independence and accountability, how it is linked to larger public policy, and its involvement in federal-provincial issues as well as on the international stage.

Making Money offers a rare glimpse behind the curtain of Canada's central bank: what it is, what it does, how it functions, and the policy choices and constraints it struggles with. This book demystifies the arcane art of central banking, proving that the Bank of Canada matters in the life of every Canadian, and showing what it takes to have a good policy for money, whether in Canada or in any country."
—Foreword by Stanley Fischer
Vice Chairman, Citigroup, and President, Citigroup International; Formerly First Deputy Managing Director, IMF; Killian Professor and Head of Department of Economics, MIT; and Chief Economist, World Bank

"Whether or not the reader agrees with [John Crow's] view, by the end of the book he or she will have been forced to wrestle with the basic issues of monetary policy in the modern world, by someone who has thought clearly and deeply about the issues, who expresses himself simply and cogently, and who makes an impressive case for his views."
—From the Foreword, by Stanley Fischer

John Crow served as Governor of the Bank of Canada for seven years, from 1987 to 1994. In total, his career at the Bank spanned 21 years. He first joined as the Deputy Chief of the Research Department, and in subsequent years was appointed to more senior positions, culminating in his term as Governor. In 1993, he was elected Chairperson of the central bank governors of the Group of Ten countries, a position he relinquished when his term as Governor ended.

Prior to joining the Bank of Canada, Mr. Crow held various positions with the International Monetary Fund (IMF) in Washington, D.C. His initial work at the Fund was concentrated on Latin America. He then transferred to the North American Division (Canada, the United States, and Mexico), and in 1970 was appointed Chief of the Division.

Born in London, England, Mr. Crow spent two years on national service in the Royal Air Force, qualifying as an interpreter in Russian. He holds a degree from Oxford University in Philosophy, Politics, and Economics.

Mr. Crow now lives in Toronto and engages in a wide range of private- and public-sector activities in Canada and abroad. He is director or advisor to a number of companies, and is also a Senior Fellow of the C.D. Howe Institute and Chairman of the Investment Committee of the Canada Council for the Arts. In 1999, he chaired a committee of international experts that was commissioned by the Executive Board of the International Monetary Fund to evaluate IMF bilateral, regional, and multilateral surveillance activities; and in 2002 he participated in a high-level international assessment of monetary problems in Argentina.