Money and Interest
If nothing else has so far emerged from this account of the City of London, it is surely clear that a lot changed in the 1980s. The particular causes of this may be discussed for years to come, but international deregulation (or liberalisation, as it has also come to be known) has to be the most prominent factor. Financial markets have grown extravagantly and competition within them is vigorous, if not cut-throat. The advantages are obvious — a free and efficient flow of cash is essential if producers of goods and services are to respond quickly and effectively to developments within their own markets. The financial services provided by the City and similar centres offer necessary lubrication to the wheels of industry. The better the quality of the lubricant, the faster the wheels can turn.
KeywordsInterest Rate Discount Rate Money Market Treasury Bill Interbank Market
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