[JackFr]

Another way to look at this is that for most of the period under consideration, the Canadian economy was an order of magnitude smaller than both Britain and America. For the bulk of the period under consideration, Canadian currency was fixed to the pound Sterling, which had the Bank of England. Canada gained independence in 1867 and in 1871 passed the Bank Act (and for the bulk of the period under consideration was subject to English common law, and Canadian Acts could be voided by the House of Commons.)

That being said, I admit to not having read the paper. The authors' ultimate conclusion may stand, but that their exemplar is a British Dominion adds some confounding details.

[eesmith]

Their "happy six", defined as "free of systemic crises since 1970", are Australia, Canada, Hong Kong, Malta, New Zealand, and Singapore.

They do point out the connections to British rule. They give some other reasons as well.

A test for the importance of being fixed to the pound Sterling, etc., is to look to other regions under British rule, like Jamaica, Mauritius, Kenya, Gambia, and Cyprus, and evaluate their banking crises.

I know nothing about that history, just wanted to pointed out that it is, in principle, a testable prediction.