Comparing modern financial systems with much earlier ones provides a powerful means of developing a better understanding of both. Financial history has recently benefited from radical improvements in the availability of financial data from the twelfth century, and this has created new opportunities for applying empirical models over longer time periods. This course takes advantage of these developments and offers a history of British financial developments from the twelfth century. It should be of interest to both social historians and students with a background in analytical economics and econometrics.
The topics covered will include:
1. Evolution of money and credit counterparts;
2. Role of the English Mint as an off-balance sheet intermediary. The Mint price and its effectiveness as a cap and collar for bullion prices;
3. Risk management issues facing the Bank of England in the eighteenth and nineteenth century. Basis risk and the interdependency of the Bank and the Mint;
4. The development of the London money market in the nineteenth century and the evolving role of the Bank of England;
5. Clearing banks and building societies;
6. Bank and building society deregulation since 1971;
7. Shadow banking and the repo market;
8. Attempts to control of money and credit aggregates;
9. Monetary policy and the exchange rate;
10. Monetary policy without money: inflation targets and interest rate policy.
There will an opportunity to compare academic thinking against the views and experience of market practitioners.