Bloomberg reports that James Coyne led the Bank of Canada from January 1st, 1955, to July 13th, 1961, when he quit over disagreements with Progressive Conservative Prime Minister John Diefenbaker on monetary policy and the governor’s pension. The so-called Coyne Affair led to a policy review that improved coordination of the central bank, government and the financial system.
'The Coyne Affair arguably represents the greatest institutional crisis ever faced by the Bank', Wilfrid Laurier University economics professor Pierre Siklos wrote in a 2007 paper. 'The Minister of Finance and the Governor would end up talking, whether in public or in private, at cross-purposes, the former contradicting earlier positions in the name of political expediency, the latter seemingly trespassing in fields normally reserved for ministers'.
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