The primary function of a central bank is to manage the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists. The chief executive of a central bank is normally known as the Governor, President or Chairman. History Prior to the 17th century most money was commodity money, typically gold or silver. Bank of England The sealing of the Bank of England Charter (1694). Spread around the world
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Bank of England - WikiThe Bank of England, formally the Governor and Company of the Bank of England, is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world, after the Sveriges Riksbank, and the world's 8th oldest bank. It was established to act as the English Government's banker, and is still the banker for the Government of the United Kingdom. The Bank was privately owned by stockholders from its foundation in 1694 until nationalised in 1946. In 1998, it became an independent public organisation, wholly owned by the Treasury Solicitor on behalf of the government, with independence in setting monetary policy. The Bank is one of eight banks authorised to issue banknotes in the United Kingdom, but has a monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by commercial banks in Scotland and Northern Ireland. History
J. P. MorganJohn Pierpont "J. P." Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. Morgan died in Rome, Italy, in his sleep in 1913 at the age of 75, leaving his fortune and business to his son, John Pierpont "Jack" Morgan, Jr., and bequeathing his mansion and large book collections to The Morgan Library & Museum in New York. At the height of Morgan's career during the early 1900s, he and his partners had financial investments in many large corporations and had significant influence over the nation's high finance. Childhood and education J. In the spring of 1852, illness that was to become more common as his life progressed struck; rheumatic fever left him in so much pain that he could not walk. Career Early years and life J. J.P. After the 1893 death of Anthony Drexel, the firm was rechristened "J. Modernizing management Newspapers U.S.
Bank of England injects further £75bn into economy6 October 2011Last updated at 15:11 The governor of the Bank of England, Mervyn King, tells the BBC that quantitative easing will have an effect The Bank of England has said it will inject a further £75bn into the economy through quantitative easing (QE). The Bank has already pumped £200bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks. But this is the first time it has added to its QE programme since 2009. The Bank also held interest rates at the record low of 0.5%. On Wednesday, data showed the UK economy grew by 0.1% between April and June, which was less than previously thought. "In the United Kingdom, the path of output has been affected by a number of temporary factors, but the available indicators suggest that the underlying rate of growth has also moderated," the Bank said in a statement. "The deterioration in the outlook has made it more likely that inflation will undershoot the 2% target in the medium term.
Rockefeller familyThe Rockefeller family /ˈrɒkɨfɛlər/ is an American industrial, political, and banking family that made one of the world's largest fortunes in the oil business during the late 19th and early 20th centuries, with John D. Rockefeller and his brother William Rockefeller primarily through Standard Oil. The family is also known for its long association with and control of Chase Manhattan Bank. They are considered to be one of the most powerful families, if not the most powerful family, in the history of the United States. Real Estate and Institutions The Rockefeller Center and the RCA Building, December 1933 The family was heavily involved in numerous real estate construction projects in the U.S. during the 20th century. Chief among them: Conservation The family was honored for its conservation efforts in November, 2005, by the National Audubon Society, one of America's largest and oldest conservation organizations, at which over 30 family members attended.
Bank of England court worried about Mervyn King's politicised roleGiving evidence to the Treasury Select Committee on Tuesday, Sir Roger Carr, a member of the court and former chairman of Cadbury, said it was important that Mervyn King was not drawn into politics. "The integrity and credibility of the Bank are absolutely dependent on it not being seen as having a political axe to grind, so that for me is of paramount importance. We have made that very clear to the Governor," said Sir Roger. "What politicians must do is not seek to draw him in, to make it appear he is giving political support," he added. Sir David Lees, chairman of the court and the former chairman of Tate & Lyle, said he was "not terribly comfortable" with the comments made by Mr King in his Newcastle speech. Brendan Barber, another member of the court and the general secretary of the Trades Union Congress, said Mr King could speak "loudly" on "fact-based issues", adding that the Governor should not stray "on to political territory".
Great DepressionUSA annual real GDP from 1910–60, with the years of the Great Depression (1929–1939) highlighted. The unemployment rate in the US 1910–1960, with the years of the Great Depression (1929–1939) highlighted. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline. The depression originated in the U.S., after the fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). The Great Depression had devastating effects in countries rich and poor. Cities all around the world were hit hard, especially those dependent on heavy industry. Some economies started to recover by the mid-1930s. Start Even after the Wall Street Crash of 1929, optimism persisted for some time; John D. Together, government and business spent more in the first half of 1930 than in the corresponding period of the previous year. Economic indicators Causes Keynesian Marxist
Mervyn King (economist) - WikiMervyn Allister King, Baron King of Lothbury, GBE FBA (born 30 March 1948) was the Governor of the Bank of England and Chairman of its Monetary Policy Committee from 2003 to 2013. He had been Deputy Governor from 1998 to 2003, Chief Economist and Executive Director from 1991, and a non-executive director of the Bank from 1990 to 1991. King is a Fellow of the British Academy, an Honorary Fellow of King's and St John's Colleges, Cambridge and holds Honorary Degrees from Cambridge, Birmingham, City of London, Edinburgh, London Guildhall (now London Metropolitan University), London School of Economics, Wolverhampton, Worcester and Helsinki Universities. He is a Foreign Honorary Member of the American Academy of Arts and Sciences, sits on the Advisory Council of the London Symphony Orchestra, is a Patron of Worcestershire County Cricket Club, Honorary President of Ekenäs Cricket Club in Finland, and a Trustee of the National Gallery. King had faced accusations[who?]
Woodrow WilsonIn his first term as President, Wilson persuaded a Democratic Congress to pass a legislative agenda that few presidents have equaled, remaining unmatched up until the New Deal in 1933. This agenda included the Federal Reserve Act, Federal Trade Commission Act, the Clayton Antitrust Act, the Federal Farm Loan Act and an income tax. Child labor was curtailed by the Keating–Owen Act of 1916, but the U.S. Supreme Court declared it unconstitutional in 1918. Wilson also had Congress pass the Adamson Act, which imposed an 8-hour workday for railroads. Although considered a modern liberal visionary giant as President, Wilson was "deeply racist in his thoughts and politics" and his administration racially segregated federal employees and the Navy. According to Wilson biographer A. In the late stages of the war, Wilson took personal control of negotiations with Germany, including the armistice. Early life Wilson was born in Staunton, Virginia, on December 28, 1856. Wilson c. mid 1870s