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Official Preoccupation with the Banking System

  • John Cooper

Abstract

In the 1970s and early 1980s, control of the banking system has become a major preoccupation of governments and control authorities in the United Kingdom, the other members of the European Community and generally throughout the world. This preoccupation has focused on two quite separate types of control, prompted by two distinct groups of factors: prudential control, designed to ensure that banks are prudently run, with the aim of protecting depositors and avoiding major upheavals in confidence and the movements of funds; and monetary control, designed to use the banking mechanism as a positive tool in the conduct of macroeconomic policy generally or, at the very least, to prevent the banking mechanism from pulling in the opposite direction from, and thwarting, other measures of economic policy.

Keywords

Monetary Policy Central Bank Foreign Exchange Banking System Money Supply 
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Notes

  1. 1.
    The crisis, its antecedents and the response of the Bank of England and the banking community generally are described in a paper entitled ‘The secondary banking crisis and the Bank of England’s support operations’ prepared by the Bank of England for the Wilson Committee and published in the Bank of England Quarterly Bulletin, vol. 18, no. 2 (June 1978). For a more detailed and colourful description see Margaret Reid, The Secondary Banking Crisis 1973–75 (Macmillan, 1982).Google Scholar
  2. 8.
    John Williamson, The Failure of World Monetary Reform 1971–74 (Nelson, 1977) p. 3.Google Scholar
  3. 9.
    See, for example, John Williamson, ibid.;Google Scholar
  4. Andrew Crockett, International Money: Issues and Analysis (Nelson, 1977) and the bibliographies in those two books.Google Scholar
  5. 11.
    Professor Williamson’s source for the earnings on US direct foreign investment is Marina v. N. Whitman, The Current and Future Role of the Dollar: How Much Symmetry? (Brookings Papers on Economic Activity, 1974 (3)), p. 555.Google Scholar
  6. 23.
    John Cooper, A Suitable Case for Treatment: What to do about the Balance of Payments (Penguin, 1968) p. 18.Google Scholar
  7. 25.
    R. F. Harrod, Policy Against Inflation (Macmillan, 1958) p. 230.Google Scholar
  8. 27.
    Tim Congdon, Monetary Control in Britain (Macmillan, 1982) p. 3.Google Scholar
  9. 28.
    Ibid., p. 3.Google Scholar
  10. 29.
    Speech by the Governor of the Bank of England, reprinted in Bank of England Quarterly Bulletin (March 1977) p. 48.Google Scholar
  11. 31.
    Speech by the Governor of the Bank of England, reprinted in Bank of England Quarterly Bulletin (September 1976) p. 325.Google Scholar
  12. 32.
    Speech by the Governor of the Bank of England, reprinted in Bank of England Quarterly Bulletin (December 1976) p. 454.Google Scholar

Copyright information

© John Cooper 1984

Authors and Affiliations

  • John Cooper
    • 1
  1. 1.LondonUK

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