Englannin pankki

Englannin pankki

TheEnglannin pankkiisthecentralbankoftheUnitedKingdom.ItisresponsibleforthemonetarypolicyoftheUnitedKingdomthroughtheMonetaryPolicyCommittee(MPC).

TheEnglannin pankkiisoneofthemostimportantinstitutionsandbuildingsintheLondoncity.SincethecreationoftheEnglannin pankkiin1694,theEnglannin pankkibegantooperate,andthengraduallychangeditsfunctions.Since1694,asthecentralbankoftheUnitedKingdom,itisthelargestandbusiestfinancialinstitutionintheworld.VisitorscanappreciatethedevelopmentprocessintheMuseumoftheEnglannin pankki,whichisworthyofthe"financialcenter".

TheEnglannin pankki(Englannin pankki)isthecentralbankoftheUnitedKingdom.TheEnglannin pankkihasalwaysactedasthebankoftheEnglishgovernmentandisresponsibleforthecountry’smonetarypolicy.Itsfunctionalinstitutionsaredividedintopolicyandmarket,financialstructureandsupervision,andbusinessandservice.

Johdanto englanniksi

TheEnglannin pankkiisthecentralbankoftheUnitedKingdom.Sometimesknownasthe'OldLady'ofThreadneedleStreet,theBankwasfoundedin1694,nationalisedon1March1946,andgainedindependencein1997.StandingatthecentreoftheUK'sfinancialsystem,theBankiscommittedtopromotingandmaintainingmonetaryandfinancialstabilityasitscontributiontoahealthyeconomy.

Historiallinen evoluutio

BeforetheestablishmentoftheEnglannin pankki,theBritishroyalfamilytriedeverymeanstoborrowmoneyfromtherichandaristocraticfeudallordsinLondon.Atthattime,theWangfamilyhadatreasuryandmintbureau,wheretherichwouldstoregoldandsilver.Oneoftheroyalfamily’smisdeedswasthattheyrefusedtoredeemthegoldcoinsthatpeoplekeptthere,whichwasactuallyembezzlingcustomerdeposits.Inthe"NineYearsWar"inBritainandFrance,theking'sministerinchargeprintedgovernmentbondsandsoldthemdirectlytomerchants,promisingtopayinterest,andallowingmerchantstousesuchfinancialbondstopaytaxes.However,thetermoftheseloanswasveryshort.AftertheMinisteroftheSealdidnotfulfillthepromiseofinterestpaymentseveraltimes,themerchantswerenolongerwillingtopaytobuyfiscalvouchers.Inthisway,thekingwhohaslosttherighttoincreasetaxesisexhausted.

TheprimitivefinancialbusinessintheCityofLondonhasbeendevelopingslowlyafterQueenElizabethI(1558-1603),adaptingtotheneedsoftradepayments.Bytheendoftheseventeenthcentury,merchantswereplanningtoestablishabanksimilartoaDutchinstitution.Thegovernment’splightprovidesthemwithaperfectopportunity.Theyareunwillingtolendmoneytotheroyalfamilyseparately,butwanttobankthegovernment’sdirectlendingfunction.

ThepersonontheEnglannin pankkiclausewhocameforwardtoorganizenegotiationswiththegovernmentisWilliamPaterson,aScot.ButtherealoperatorisSirJohnHoublon,aveteranbusinessmagnateinLondon.TheEnglannin pankki’sproposalwasquicklyapprovedbyCongress,andtheKinggrantedaroyalcharter(RoyalCharter),allowingthebanktobreakthroughthelegalprovisionsofthetime,establishajointstockcompanywithanunlimitednumberofpeople,andestablishawell-capitalizedfinancinginstitution,providedthatLendmoneytothegovernmentforalongtime.Afewdaysafterobtainingtheconcession,1,208shareholdersintheCityofFinanceraised1.2millionpoundsinjusttwoweeks.Thegovernmentagreestoanannualinterestrateof8%andpaysthebankanannualmanagementfeeof4,000pounds.Itonlytookhalfayearforthemoneytobefullywithdrawnbythegovernment.Scholarswhodescribethe"NineYearsWar"havewrittenthattheequipmentoftheBritishsoldiersonthefrontlinehassinceenviedtheFrench.

Fromtheperspectiveofbankingbusiness,theestablishmentoftheEnglannin pankkiisnotabreakthrough.TheloannotebusinessitisengagedinhasprecedentsintheNetherlands.ItissaidthatthebankestablishedinSwedenin1657initiatedthetraditionoffinancingservicesfortheroyalfamilyandissuedaunifiedcurrencywithafixedamount.Intheserespects,theEnglannin pankkiisanoutstandingimitatorwithtransformationandcomprehensivecapabilities.ItsimitationobjectsaremainlytheDutchjoint-stockBankofAmsterdamestablishedin1609.ThenewKingWilliamIIIfromtheNetherlandsisfamiliarwiththismechanism.However,theBankofAmsterdamwasnotestablishedfortheroyalfamilynorforthewar.Itservesemerginginternationalcommerce,includingtheDutchEastIndiaCompany,andlaterexpandedtotherepublicangovernmentoftheUnionProvinceoftheNetherlands.Itcreatedfinancialinstrumentssuchasdepositaccounts,bookkeepingcurrencies,andoverdraftcredits.

Despitebeingimitatedintermsofinstitutionaldesignandbusiness,theEnglannin pankkisurpasseditspredecessorsandbecameamilestoneinthehistoryoftheindustry.Thisisfirstlybecauseitisdevelopingapowerfulnewclient—theBritishroyalfamilyandgovernment,anditwillnevergobankrupt.Afterthe"GloriousRevolution",EnglandtooktheleadinrealizingpoliticalstabilityamongWesterncountries.Therewasnocivilwaragain.Ithadbidfarewelltoimperialpowerandtheturmoilofregimechange,andcouldconcentrateondealingwithexternalchallengesandcontendingforworldhegemony.

Doingitsbusinessisaperfectmarriageofthefinancialcity'sstrongfinancialresourcesandambitiouspower.Secondly,thecustomer’sneedswereoverwhelming,becauseitfoughtagainstothercountriesindifferentpartsoftheworldaftertheseventeenthcentury.Exceptforthe"NineYears'War":-betweenWilliamIIIandFrenchKingLouisXIV.From1756to1763,Britainfoughtthe"SevenYearsWar"withFranceandseizedFrenchcoloniesintheAmericas.ItfoughtagainsttheNetherlands,Spain,theMughaldynastyofIndiaintheEast,andtheAmericansfightingforindependencein1775.Attheendoftheeighteenthcentury,itfoughtagainstNapoleonofFrance.AlthoughthewargaveBritainadvantagesintradeandcolonization,andmoneywasflowingtotheUnitedKingdom,themorethegovernmentreliedonthefinancialsupportoftheCityinVietnam,themoreborrowingsgrew.Historiansbelievethatfromthe17thtothe18thcenturyBritain’spopulationandeconomicstrength,FrancewasbetterthanthetwoBritains.Atthattime,thepopulationofFrancewasnearly20million,threetimesthatoftheUnitedKingdom.ThesupportofmodernfinanceisregardedasoneoftheimportantcornerstoneswhyBritainfinallydefeatedFranceandachievedworldhegemony.

TheestablishmentoftheEnglannin pankkiisamajorstepforwardinthecreditrelationshipbetweenthepublicandthegovernment.Inthepast,thegovernment'sdebttotheprivatesectorwasaseparateagreement.Thegovernmenthastherighttoviolateregulationsandtherulesarenottransparent.Nowitisthegovernmentthatdoesbusinesswithanorganization,formallysignsacontract,andrestrictseachotherinbusinesstalks.Thisbankmustbeprivatelyownedinordertoactasapartywithdifferentinterestsfromthegovernmentandensurethefairnessandsafetyoftransactions.TheshareholdersoftheEnglannin pankkiarepursuingprofits,buttheyalsovaluetheriseofamajorBritishempireintheworldandthepromotionoftradeandcolonizationgloballybasedontheprinciplesofBritishliberalism.Thisisinseparablefromthepowerofthestateandthegovernment.Forthegreaterlong-termbenefit,businessmenarewillingtoformallianceswiththegovernment.

TheEnglannin pankkididnotthinkofcontrollingthepermanentdebtsofthekingandthegovernmentatthetime,butthelatterwasbeggingtheformertorescuetheurgentneed.Asabargainingcondition,thekinggavetheEnglannin pankkiatime-limited"concessionright":after11years(1706),oncethegovernmentpaidofftheinitialloan,therighttooperatewouldberecovered.IwanttoemphasizeherethattheEnglannin pankkiatthistimedidnothavetheresponsibilityofstabilizingfinance,currency,economy,andforeigntrade.Theseconceptsdidnotexistatthattime.ThebanknotesissuedbytheEnglannin pankkilaterreplacedthedirectfiscalbonds,andtheywerenotnationalcurrencies.Ithasbecomeaso-called"centralbank"andthereisstillalonghistoricalprocess.

Theearliestcentralbankformedintheworldistheoriginatorofthecentralbanksystemofvariouscountries.In1694,itwasestablishedunderthecharteroftheKingofEngland,withasharecapitalof1.2millionpounds,whichwasraisedfromthesociety.Atthebeginningofitsestablishment,itobtainedtherighttoissuebanknotesnotexceedingthetotalcapital,andthemainpurposewastoadvancethegovernment.By1833,theEnglannin pankkiwaseligibleforunlimitedbanknotes.In1844,theBritishParliamentpassedtheBankingFranchiseRegulations(theBillRegulations),stipulatingthattheEnglannin pankkiisdividedintoanissuancedepartmentandabankingdepartment;theissuancedepartmentisresponsibleforthetotalissuanceof14millionpoundsofsecuritiesandunnecessarymetalstorageinthebusiness.Bankbondsofequalamount;thequotasfortheissuanceofotherbanksthathaveobtainedtherighttoissuearealsostipulated.

Sincethen,theEnglannin pankkigraduallymonopolizedthecountry'scurrencyissuancerights,andin1928becametheonlyissuingbankintheUK.Atthesametime,theEnglannin pankki,withitsever-increasingstatus,undertakestheassignmentandwrite-offofthedebt-to-debtrelationshipbetweencommercialbanks,andthefinalsettlementofbillexchanges.Whentheeconomyisbooming,itacceptsbillsrediscountingfromcommercialbanks,andishitbytheeconomiccrisis.Itactsasthe"lenderoflastresort"ofcommercialbanks,thusgainingthetrustofcommercialbanksandfinallyestablishingthestatusof"bankofbanks".

AsLondonbecametheworld'sfinancialcenter,inresponsetoactualneeds,theEnglannin pankkiformedaflexiblerediscountpolicyandopenmarketactivitiesandotherregulatorymeasures,whichbecamethemodelandfoundationofmoderncentralbanktheoryandbusiness.InJuly1933,the"ForeignExchangeStabilizationAccount"wasestablishedasanagentfortheTreasury.After1946,theEnglannin pankkiwasnationalizedandremainedacentralbank.ItwassubordinatetotheMinistryofFinance.Itcontrolledtheaccountsofthetreasury,discountcompanies,banksandotherprivatecustomers,andassumedthemanagementofgovernmentdebt.ItsmaintaskwasstillthegovernmentItisrequiredtodeterminethenationalfinancialpolicy.

TheheadofficeoftheEnglannin pankkiislocatedinLondon.Thefunctionalinstitutionsaredividedintothreeparts:policyandmarket,financialstructureandsupervision,businessandservice,andsetup15bureaus(departments).Atthesametime,theEnglannin pankkialsohas8branchesinBirmingham,Bristol,Leeds,Liverpool,Manchester,Southampton,NewcastleandLondonCourtDistrict.

Pankin ominaisuudet

TheEnglannin pankkienjoystheprivilegeofissuingbanknotesinEnglandandWales.ScotlandandNorthernIrelandareissuedbygeneralcommercialbanks,butbanknotesissuedbyEnglandareusedasbanks.Thelenderoflastresort,keepsthedepositreservesofcommercialbanks,andactsasasettlementbankforbills,supervisingBritishcommercialbanksandotherfinancialinstitutions;asagovernmentbank,actingasanationaltreasury,stabilizingthevalueofthepoundcurrency,andparticipatinginallinternationalaffairsonbehalfofthegovernmentFinancialinstitutions.

Therefore,theEnglannin pankkihasthecharacteristicsofatypicalcentralbank's"issuingbank,bank'sbank,andgovernment'sbank".TheBritishgovernmentusesgovernmentbondstoborrowmoneyfromtheEnglannin pankki,andtheEnglannin pankkiusesitsowncurrency(poundsterling)topurchaseBritishgovernmentbonds;thisgovernmentbondisavoucherforfuturetaxation,andtheholdingofgovernmentbondsbytheEnglannin pankkimeansthatitwillreceivefuturegovernmenttaxes.

IftheBritishgovernmentwantstobuybackthenationaldebtincirculation,itmustbuyitbackwithgoldcoinsortheequivalentcurrencyrecognizedbytheEnglannin pankki(currencycanbeexchangedforgold).ThecurrencyissuedbytheEnglannin pankki(thepoundsterling)wasformerlyknownasbanknotes,whichareactuallyreceiptsforgoldcoinsdepositedbydepositorsingoldsmiths’custody.Duetotheinconvenienceofcarryingalargenumberofgoldcoins,everyonebegantotradewiththereceiptofgoldcoins,andthenexchangedthecorrespondinggoldcoinsfromthegoldsmith.

Foralongtime,peoplefeelthatitisunnecessarytoalwaysgotogoldsmithstodepositandwithdrawgoldcoins.Later,thesereceiptsgraduallybecomecurrency.Theso-calledgoldstandardsystemisamonetarysystembasedongold.Underthegoldstandard,orthevalueofeachunitofcurrencyisequivalenttoacertainweightofgold(thatis,theamountofgoldinthecurrency).BecausethecirculationandacceptanceofthebanknotesissuedbytheEnglannin pankkiarerelativelywide,thebanknotesaredefaultedtobethenationalcurrency.

Therefore,theEnglannin pankkicanuseitsbanknotestopurchasenationaldebt,whichwilllaterbecalledthecurrencyincirculation.Itcanbeconsideredthatthenationalcurrencycanbeexchangedforgovernmentbonds,providedthatitcanbeconvertedintogoldcurrencyorequivalent;thegovernmentbondscanonlybeusedtocollectinterestfromthegovernment,andcannotbeconvertedintogoldorcurrency,becausethegovernmentbondsare"permanentdebts"ofthegovernment.

Pankkilaitokset

ThegoverningbodyoftheEnglannin pankkiistheboardofdirectors.Itiscomposedofthepresident,vicepresidentsand16directors.Itisthehighestdecision-makingbody.ThemembersarerecommendedbythegovernmentandappointedbytheKing.Meetingatleastonceaweek.

Bank of England

Thetermofofficeofthechairmanandvicepresidentsis5years,andthedirectorsare4years.Theyresigninrotation,and4peopleresignattheendofFebruaryeachyear.Theboardofdirectorselectsanumberofpermanentdirectorstopresideoverthebusiness.Therearefivespecialcommitteesunderthecouncil:standingcommittee,auditcommittee,personnelandtreasurycommittee,andbankbondprintingcommittee.DirectorsmustbeBritishnationalsandunder65yearsofage,butmembersoftheHouseofCommonsandgovernmentstaffarenotallowedtoserve.

Johtajat

ThecurrentPresidentoftheEnglannin pankkiisMarkCarney(MarkCarney),whosucceededtheformerPresidentMervynKingonJuly1,2013.ForthepostofSirGrace,thetermofofficeis5years.Thisisalsothefirstforeigngovernorinthe318-yearhistoryoftheEnglannin pankki.

Liittyviä tietoja

Interestratehike

TheEnglannin pankki(theEnglannin pankki)unexpectedlyraisedtherepurchaserateby25basispoints,sinceAugust2007The3rdinterestrateincrease.TheEnglannin pankki'smoveisintendedtocontroltheacceleratinginflation.Sofar,theUK'srepurchaseratehasreached5.25%,whichisthesameastheUSfederalfundsrate.

BeforetheMonetaryPolicyCommittee(MPC)meeting,fewpeopleexpectedtheEnglannin pankkitoraiseinterestrates.SomeanalystsbelievethattheremarksmadebytheEnglannin pankkiindicatethatthecentralbank'sinterestratehikewillcontinue.

TheBritishpoundagainsttheU.S.dollarjumped157pointsfrom1.9378to1.9533within20minutesofthenews.TheEnglannin pankkistatedinastatementissuedafterthemeetingthat“domesticdemandisgrowingsteadily,creditandbroadmoneyarestillgrowingrapidly,andtheeconomy’sremainingcapacityislimited.Inflationwillrisefurtherinthenearfutureandcontinuetobehigherthantheinflationtarget.AsofNovember2006Comparedwiththereleaseofthe"Englannin pankkiInflationReport",theriskofrisinginflationisnowgreater."

Kiinnostus ennallaan

TheEnglannin pankkiMonetaryPolicyCommitteeannouncedtheDecemberinterestrateresolutiononDecember5,2013,maintainingthebenchmarkinterestrateof0.50%unchangedandmaintainingassetsof375billionpoundsThepurchaseplanremainsunchanged.

Sincethe50basispointcutonMarch5,2009,theUKhasmaintaineditsbenchmarkinterestrateatarecordlowof0.50%;OnJuly5,2012,thepurchaseof50billionpoundsofassetsincreasedthetotalscaleofQEby375billionpounds.

TheEnglannin pankkiwillannouncetheminutesofthemeetingonDecember18.

RescueNorthRock

In2007,theEnglannin pankki,thecentralbankoftheUnitedKingdom,announcedthatitwouldprovidefinancialassistancetoNorthRockBank,whichwasinfinancingdifficultiesamidsttheglobalUSsubprimemortgagecrisis.NorthRockBankannouncedthatits2007earningswillbeabout20%lowerthanexpected.ThenewscausedalargenumberofbankdepositorstolineuptowithdrawdepositsinBeiyanBank.

TheBritishgovernment,theEnglannin pankkiandtheBritishMonetaryAuthorityissuedajointstatementstatingthatthegovernmentauthorizedthecentralbanktoprovidefinancialassistancetoNorthRockBank.

NorthRockBanksubmittedanapplicationforfinancialassistancetotheCentralBank.TheEnglannin pankki,theUKTreasuryDepartmentandtheMonetaryAuthorityheldanemergencymeetingthatnightandagreedtotheNorthRockBank’sapplication,butdidnotdisclosethespecificamountoffundsprovidedtoit.ThisisthefirsttimethattheEnglannin pankkihasinvestedto"rescue"atroubledbanksinceitstartedtoindependentlyadjustinterestratesin1997.

NorthRockBank,headquarteredinNewcastle,northwestEngland,isthefifthlargestmortgagelenderintheUnitedKingdom.Buyersprovidemortgages.However,NorthRockBank's"goodperformance"inthemortgagemarketencountered"Waterloo"becauseoftheUSsubprimemortgagecrisisandhadtoaskthecentralbankforhelp.

Subprimemortgagespread

NorthRockBankisthefirst"victim"oftheBritishfinancialindustrytobe"dragged"bytheUSsubprimemortgagecrisis.Unlikemostbanks,whichrelyondepositsfromdepositorstoprovidemortgageloanstohomebuyers,BeiyanBankmainlyreliesonborrowingfromotherbanksandsellingmortgagesecuritiesinthefinancialmarkettoraisefunds.Therefore,ithasbetter"resistanceability"inthesubprimemortgagecrisis.weak.

TheU.S.subprimemortgagecrisishashittheworld.Duetoconcernsabouttheexpansionofthesubprimemortgagecrisis,investorswilltighteninvestment,thecreditmarkethasshrunk,marketliquidityhasdeclined,andinter-banklendingamongpeershasdroppedsignificantly,andlendingrateshaverisenaccordingly.Thisblowhitthe“fategate”ofBeiyanBank.Althoughtherearefewsubprimeornon-performingloansintheloanstructure,theprofitabilityofBeiyanBank,whichhasencountereddifficultiesinthefinancingmarketandmortgagesecuritiesmarket,hasstillbeenhithard.Sincethebeginningofthisyear,BeiyanBank’ssharepricehasplummetedbyabout50%.Itdroppedby30%onthe14th.

ThecrisisofNorthRockBanktriggeredaseriesof"earthquakes"intheUKstockmarket.ThesharepricesofmajorUKmortgagelenderssuchasUnion-Leicester,Bradford-BentleyandParagonhavefallen,amongwhichParagon’ssharepricehasfallenby25%.Bytheendoftheafternoon,theaveragepriceindexof100stocksintheFinancialTimesoftheLondonstockmarketfellbyabout1.2%fromtheprevioustradingday,closingat6289.3points.

Jono nostoa varten

AccordingtothefinancialcompensationregulationsintheUnitedKingdom,ifabankfails,depositorswithadepositoflessthan£2,000(approximatelyUS$4,000)canbefullycompensated.However,ifthedepositexceeds2,000pounds,theupperlimitofcompensationis35,000pounds,andthepartexceeding2,000poundscanonlyget90%compensation.Inotherwords,saverswith35,000and350,000poundsmayendupwithonly31,700poundsincompensation.

Thecentralbank'sfundingto"rescue"theNorthRockBankhasmadeBritishdepositorswithdepositsinthisbankextremelynervous.FromLondontoNewcastle,therewerelonglinesatthegatesofNorthRockBankbranches,anddepositorsrushedtowithdrawmoney.InNewcastle,therewasevenachaoticsceneofdepositorsfightingforthepositionoftheteam.

Inordertostabilizepeople’shearts,theBritishChancelloroftheExchequerAlistairDarlingtoldtheBBC:“Thefinancialsystemhasenoughmoney,andeverybankhasmoney...Theyjustdon’twanttoborrowshort-term.,CausingNorthRockBankandotherinstitutionstoencounterfinancingdifficulties.”ThejointstatementoftheEnglannin pankki,theMinistryofFinanceandtheMonetaryAuthorityoftheUnitedKingdomalsostated:“TheMonetaryAuthorityhasdeterminedthattheBankofNorthRockissolvency,thecapitalexceedstheprescribedrequirements,andtheloanqualityisgood.”DepositorsThereareapproximately24billionpoundsindepositsatNorthRockBank.

Butsaverswhoseowndepositsarethreateneddon'tthinkso.JohnDuncanwithdrewalldepositsfromNorthRockBank.HetoldReuters:"Today'snewspapersarefullofheadlineslike'NorthRockBankcashemergency'.Whatwillyoudoifyouwanttodepositmoneyhere?"

CarneyTimes

TheeraofCarneyiscoming.TheEnglannin pankkiisabouttousherinachange

ThenewGovernoroftheEnglannin pankki(BOE)MarkCarney(MarkCarney)inJuly2013Officiallytookofficeonthe1st.AtthesametimethattheEnglannin pankkiannouncedthearrivaloftheCarneyera,theEnglannin pankkiisexpectedtoundergomajorchangesinpersonnelandpolicies.

AsCarneywasabouttotakeoffice,DeputyPresidentPaulTuckerofferedtoresign.GiventhatTuckerlosttoCarneyinthecompetitionforthenewpresident,hisdepartureisnotunexpected.

However,anotherdeputygovernor,CharlieBean,willstepdownattheendofJune2014,whichmeansthatthreeofthecentralbank’sfourtoppositionswillsoonchangehands.AllofthiscomesatatimewhenthecentralbankisgivenawiderangeofnewpowersandtheUKisfacinghugeeconomicchallenges.Forthecentralbankingsector,whichhasalwaysactedsteadily,thislooksnolessthanachange.

TuckerwillcontinuetostayattheEnglannin pankkiuntilthisfalltoassistCarneyinthehandoverofwork.Therefore,theoutlookfortheUK'squantitativeeasingpolicywillnotchangeintheshortterm,especiallygiventherecentimprovementinUKeconomicdata.Recently,asmallnumberofofficialswithintheEnglannin pankkivotedfortheexpansionofthegovernmentbondpurchaseplan,butTuckerisnotoneofthem.

ThemostimportantrecenteventoftheEnglannin pankkiisitsinflationreportscheduledtobereleasedonAugust7,2013.TuckerandBienwillalsoattendthereleaseofthisreport.ThisreportwillrespondtotherequestoftheBritishChancelloroftheExchequerGeorgeOsborne;OsborneaskstheEnglannin pankkitoconsiderfollowingtheexampleoftheUSFederalReserve(Fed)settingthresholdsforinflationexpectationsandunemployment,basedoneconomictrendsTomakepolicycommitments.

However,bymid-2014,thesituationattheEnglannin pankkiwillbeverydifferentfromnow.Thecentralbankhasbeengivennewpowerstosupervisedomesticbanksandhasadoptedso-calledmacro-prudentialpolicies.Therefore,changesintheEnglannin pankkiwillnotonlystopatthepersonnellevel.WhoeversucceedsTuckerasthedeputygovernorofthecentralbankresponsibleforfinancialstabilityaffairswillplayakeyroleindetermininghowtheEnglannin pankkisuccessfullyassumesthesenewresponsibilitiesinthefuture.

Atpresent,itseemsthatthemarketmaynotbedisturbedbyTucker'sdeparture.Butovertime,itwillbecomeimportantwhoOsbornechoosestosucceedTuckerandBien.Afterall,thenewmanagementoftheEnglannin pankkimusttakeuptheresponsibilitytocompletethereformoftheBritishfinancialsystem,ensurethattheeconomicrecoverydoesnotdeviatefromthetrack,andhelptheEnglannin pankkismoothlyexitthecurrentultra-loosemonetarypolicy.Thesetasksarenoteasy.

Kolme muutosta, jotka Carney tuo mukanaan

Firstofall,Carney’smessagedeliveryisexpectedtobemoreclearthanthatofMervynKing.

TheBankofCanada’shandlingofthefinancialcrisisundertheleadershipofCarneyhasbeenwidelyacclaimed.Atfirst,theBankofCanadapromisedtoimplementlowinterestratesforalongtimeandclearlyexplainedtheguidelines.TheEnglannin pankkihasnevermadesuchstatementsaboutthefuturedirectionofinterestrates.JinEnhasalwaysadoptedapassiveattitudetowardsproposingestimatesandemphasizedthatitisimpossibletoknowthepossibledevelopmentdirectionofeconomicgrowthandinflation.Carney(andFederalReserveChairmanBenBernanke)madetheirviewsonlonger-termeconomicprospectsmoreexplicitasawayofinfluencinglong-terminterestrates.

Secondly,whatneedstobeassessedishowCarneymanagestheMonetaryPolicyCommittee(MPC)withfouroftheninemembersbeingoutsiders.

Fromtheperspectiveofthissituation,itisnotsurprisingifthepresidentfindshimselfunabletoobtainsufficientsupportvotes.JinEunoriginallyplannedtopromotetheexpansionofmoneyprintinginJune,butherepeatedlylostintheMPCvote.InCanadaandtheUnitedStates,theGovernor/Chairman’swishisoftentakenforgranted,butintheUnitedKingdom,thestandardprocessisopenlydebatedandfacingopposition.

Finally,Carneymaybereluctanttopresstheswitchofquantitativeeasing.

TheBankofCanadadidnotseektoprintmoneybecauseitdoesnotneedtodoso.However,CanadahasfelttheimpactofquantitativeeasingfromtheappreciationoftheCanadiandollar.AlthoughCarneyhassaidthatquantitativeeasingintheUnitedStatesbrings"netbenefits"toCanada,heisalsokeenlyawarethatquantitativeeasingoftenworksthroughcurrencydepreciation,leadingtoexchangeratefrictionswithtradingpartners.

Onthewhole,Carneymayimplementmorestringentmonetarypolicydiscipline.Perhapshewilldeclaretomaintainlowinterestratesforalongerperiodoftime,bringaclearermodeofcommunication,andreducethepossibilityofexpandingquantitativeeasing.

Related Articles
TOP