Making a Modern Central Bank: The Bank of England 19792003 [Hardcover]

An authoritative guide to the transformation of the Bank of England into a modern inflation-targeting independent central bank.This authoritative guide to the transformation of the Bank of England into a modern inflation-targeting independent central bank examines a revolution in monetary and economic policy and the modernization of British institutions in the late twentieth century.This authoritative guide to the transformation of the Bank of England into a modern inflation-targeting independent central bank examines a revolution in monetary and economic policy and the modernization of British institutions in the late twentieth century.Making a Modern Central Bank examines a revolution in monetary and economic policy. This authoritative guide explores how the Bank of England shifted its traditional mechanisms to accommodate a newly internationalized financial and economic system. The Bank's transformation into a modern inflation-targeting independent central bank allowed it to focus on a precisely defined task of monetary management, ensuring price stability. The reframing of the task of central banks, however, left them increasingly vulnerable to financial crisis. James vividly outlines and discusses significant historical developments in UK monetary policy, and his knowledge of modern European history adds rich context to archival research on the Bank of England's internal documents. A worthy continuation of the previous official histories of the Bank of England, this book also reckons with contemporary issues, shedding light on the origins of growing backlash against globalization and the European Union.1. Introductory; 2. Foreign Fetters; 3. The Performance of the UK Economy; 4. The Inexplicable in Pursuit of the Uncontrollable: Monetary Strategy; 5. A Good Deal of Bad Advice: The Battle over Policy Control; 6. The Long Shadow of the Deutschemark: The Exchange Rate Alternative; 7. Hong Kong: Bank Crises and Currency Crises; 8. Shaved Eyebrows: Banking and FinlcM