This article provides a history of the Bank of Canada, and examines in detail three key events that have radically changed Canada’s fiscal position. To begin with, the article presents the historical context of the Bank of Canada and why it was created. The key dates we examine are 1934, 1938, and finally, 1974. It is important to note, that prior to the 1930s, Canada had no reason to create a central bank. At this time, the banking system in Canada had been comprised of several large private banks, many of which issued their own currency. The banking system was sufficient and supplied the needs of Canadians up until the Great Depression in 1929.