A History of Central Banking in Great Britain and the United States (Studies in Macroeconomic History)

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The financial crisis of 2007–2008 caused significant stress on banks around the world. The failure of a large number of major banks resulted in government bail-outs. The collapse and fire sale of Bear Stearns to JPMorgan Chase in March 2008 and the collapse of Lehman Brothers in September that same year led to a credit crunch and global banking crises. In response governments around the world bailed-out, nationalised or arranged fire sales for a large number of major banks. Starting with the Irish government on 29 September 2008, [210] governments around the world provided wholesale guarantees to underwriting banks to avoid panic of systemic failure to the whole banking system. These events spawned the term ' too big to fail' and resulted in a lot of discussion about the moral hazard of these actions. Many of the early building societies were based in taverns or coffeehouses, which had become the focus for a network of clubs and societies for co-operation and the exchange of ideas among Birmingham's highly active citizenry as part of the movement known as the Midlands Enlightenment. [193] The first building society to be established was Ketley's Building Society, founded by Richard Ketley, the landlord of the Golden Cross inn, in 1775. [194] Thomas Henry Dyer The history of modern Europe: from the fall of Constantinople in 1453 to the war in the Crimea in 1857, Volume 2 John Murray, 1861 Retrieved 14 May 2012

The Senate tied on a vote to renew the charter of the First Bank of the United States charter. Vice President George Clinton broke the tie and voted against renewal, and the bank was dissolved. Ugolini has written a compact history of the critical functions of central banks emphasizing how the forces of centralization spurred or prevented financial innovations. The approach taken is a fresh one and will be useful, especially to scholars who are interested in specific areas where central banks have played an important role in economic development over time. That said, does the book provide new insights into central banks and their functions? This is debatable. For example, while financial stability is often mentioned it is not treated as a separate function. This is a shame in light of the ongoing debate about whether central banks are possibly over-burdened with responsibilities. It is also relevant for the question of the degree of centralization of the various functions considered at the level of a single institution. Stated differently, greater emphasis by the author on governance matters might have helped. P Watson – The Great Divide: History and Human Nature in the Old World and the New Hachette UK, 12 January 2012 -Retrieved 9 June 2012 Medieval trade fairs, such as the one in Hamburg, contributed to the growth of banking [ when?] in a curious way: moneychangers issued documents redeemable at other fairs, in exchange for hard currency. These documents could be cashed at another fair in a different country or at a future fair in the same location. If redeemable at a future date, they would often be discounted by an amount comparable to a rate of interest. Eventually, [ when?] these documents evolved into bills of exchange, which could be redeemed at any office of the issuing banker. These bills made it possible to transfer large sums of money without the complications of hauling large chests of gold and hiring armed guards to protect the gold from thieves. The Manumission of Slaves in Early Christianity By James Albert Harrill ISBN 3161469356 Retrieved 18 June 2012a b Moorey, P R S (1999). Ancient Mesopotamia :Materials and Industries The Archaeological Evidence. Eisenbrauns, 1 November 1999. ISBN 1575060426 . Retrieved 8 June 2012. Charles P. Kindleberger (Professor of Economics Emeritus at the Massachusetts Institute of Technology – 2006) A Financial History of Western Europe Retrieved 17 May 2012

Marcello De Cecco (1994), Central Banking in Central and Eastern Europe: Lessons From the Interwar Years' Experience, Washington DC: International Monetary Fund In 1868, the Meiji government attempted to formulate a functioning banking system, which continued until some time during 1881. They emulated French models. The Imperial mint began using imported machines from Britain in the early years of the Meiji period. [165] [166] Niall Ferguson, The H Though they're still shaping international events and policies today, they're largely misunderstood. Following the defeat of the Derg in 1991, the ruling coalition Ethiopian People's Revolutionary Democratic Front (EPRDF) reversed the Derg regime, proposing more liberal policies. As such, the 1994 Monetary and Banking Proclamation established the National Bank of Ethiopia as the only judicial entity, independent from the government, under Proclamation No. 83/1994 and the Licensing and Supervision of Banking Business No. 84/1994 for investment in the banking sector. [2]

The European Exchange Rate Mechanism (ERM) was set up in 1979 to reduce exchange rate variability and achieve monetary stability across Europe. This was seen as preparation for monetary union, which eventually led to the European single currency (the euro). All currencies had to remain within two agreed price points. The Republic of Venice, sometimes mistakenly credited with establishing a Bank of Venice in the 12th century, did not formally create a public bank until 1587. However in the 13th and 14th centuries its Grain Office did a banking business that included both deposits and lending. [131] The Republic's system of transferable public debt has also been identified as an important contribution to the development of banking. [132] M Gagarin, E Fantham – The Oxford Encyclopedia of Ancient Greece and Rome, Volume 1 Oxford University Press, 31 December 2009 Retrieved 17 July 2012 ISBN 0195170725 Bank failures snowballed as desperate bankers called in loans that borrowers did not have time or money to repay. With future profits looking poor, capital investment and construction slowed or completely ceased. In the face of bad loans and worsening future prospects, the surviving banks became even more conservative in their lending. [199] Banks built up their capital reserves and made fewer loans, which intensified deflationary pressures. A vicious cycle developed and the downward spiral accelerated. In all, over 9,000 banks failed during the 1930s. These forged notes were printed in the Sachsenhausen concentration camp outside Berlin. The project was codenamed ‘Operation Bernhard’.

The "Big Bang" (deregulation of London financial markets) served as a catalyst to reaffirm London's position as a global centre of world banking. A Holm -translated by F. Clarke- The History of Greece from Its Commencement to the Close of the Independence of the Greek Nation, Vol. 4 of 4 Macmillan & Co 1898 – ISBN 1440041237 Retrieved 10 June 2012 How central banking proved instrumental in saving Western civilization during the Great Depression.Bosworth, Clifford Edmund (2007). Historic cities of the Islamic world. BRILL. p.207. ISBN 978-9004153882. Ugolini concludes as follows: “central banking is deeply rooted in the economic and political context in which it happens to operate, and that the evolution of the former closely depends on the evolution of the latter” (p. 271). Readers of “institutionalist” style books of central banking would have reached the same conclusions. Hopefully, this is welcome as it means that the functional and institutional approaches yield similar results but this also means that no fundamentally new insights about the evolution of central banking are generated.