Our proximity to the United States, coupled with our smaller size and openness, forced us to confront many of the issues associated with globalization long before the term became fashionable. We have always been the archetypal small open economy.
2.1  The early years: 1935 to 1950  The Great Depression may have been exacerbated or even caused by monetary policy errors in Canada and elsewhere, but the newly created Bank of Canada had limited means of dealing with it.