The Bank of England gained operational independence in 1997 (Taaffe, 2017). It functions as the central bank for the United Kingdom. The bank started operations in 1694 as a private institution with the power to raise money for the government through the issuance of bonds. It then accepted deposits like other commercial banks. BoE was first issued with the monopoly of issuing banknotes in England and Wales in 1844. It was then nationalized in 1946 after World War II. In 1997, the functions of monetary policy were relinquished by the government to BoE (King, 2017). Like any other central bank, it has wide range of responsibilities. Since its independence, the bank functions as the lender of the last resort, the United Kingdom’s bank, issue currencies, and formulate monetary policy. It also makes policies during periods of economic downturns and increased uncertainty.
Inhaltsverzeichnis (Table of Contents)
- Essay Question
- Achievements of Bank of England
- Creation of Banknotes
- Monetary Policy
- Financial Stability
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the significant achievements of the Bank of England since gaining operational independence in 1997. It analyzes the bank's contributions to financial stability, economic growth, and the stability of the UK's monetary policy.
- The role of the Bank of England as the central bank for the United Kingdom
- The impact of the Bank of England's independence on monetary policy
- The achievements of the Bank of England in maintaining financial stability
- The Bank of England's contributions to economic growth and job creation
- The importance of the Bank of England's role in managing inflation
Zusammenfassung der Kapitel (Chapter Summaries)
The essay begins by outlining the historical development of the Bank of England, highlighting its transition from a private institution to a nationalized central bank. It then discusses the Bank of England's significant achievement in the creation of banknotes, emphasizing the role of the bank in ensuring the quality, durability, and security of its currency. The essay goes on to explore the Bank of England's responsibilities in formulating monetary policy, focusing on its role in maintaining a low and sustainable inflation rate and its impact on interest rates.
The text then examines the Bank of England's efforts to achieve financial stability. This includes a detailed analysis of the Financial Policy Committee (FPC) and its role in identifying and assessing risks to the United Kingdom's financial stability. The essay also highlights the FPC's contributions to enhancing the resilience of the financial system through various mechanisms, including the Countercyclical Buffer (CCyB) and the introduction of stress tests for UK banks.
Schlüsselwörter (Keywords)
This essay explores key concepts such as central banking, monetary policy, financial stability, inflation, economic growth, and the Bank of England's role in these areas. It examines the impact of the Bank of England's independence on its ability to effectively manage these areas and highlights the importance of its contributions to the UK economy.
- Quote paper
- George Kariuki (Author), 2019, Monetary and Fiscal Achievements of Bank of England since Independence in 1997, Munich, GRIN Verlag, https://www.grin.com/document/509590
