Money and Banking

Foreword Acknowledgments Part 1: Monetary Institutions and Systems 1. Money, Banks and the Economy 1.1 The Historical Development of Money 1.2 Money and the Development of Banking 1.3 The Characteristics of Money 1.4 The Functions of Money 1.5 Recent Developments in the Concept of Money 1.6 Nineteenth-Century Developments in Banking 1.7 The Importance of Financial Institutions Today 1.8 Revision Test 2. Central Banks 2.1 The Nature of Central Banks 2.2 The Bank of England—Its Origin and Organization 2.3 The Functions of the Bank of England 2.4 The Central Bank System of the USA—The Federal Reserve System 2.5 European Central Banks 2.6 Revision Test 3. The Commercial Banks 3.1 The Nature of the Commercial Banks 3.2 The London Clearing Banks 3.3 The Organization of Domestic Banking 3.4 Commercial Banking as Portfolio Management 3.5 Revision Test 4. Discount Houses and Other Financial Institutions 4.1 The Sophisticated Economy 4.2 The Discount Houses 4.3 The Services of the Discount Houses 4.4 Monetary Policy and the Discount Houses 4.5 The Merchant Banks 4.6 The Merchant Banks Today 4.7 The Savings Banks 4.8 The National Girobank 4.9 The Co-operative Bank 4.10 The Building Societies 4.11 The Finance Houses 4.12 Other Non-Bank Financial Intermediaries 4.13 Revision Test 5. Money Markets and Rates of Interest 5.1 Introduction 5.2 Money Markets 5.3 Financial Markets 5.4 Why Rates of Interest Vary 5.5 Revision Test Part 2: The Theory of Money 6. The Creation of Money 6.1 Introduction 6.2 Banks and the Creation of Credit 6.3 Factors Limiting the Creation of Bank Deposits 6.4 The Balance Sheet of a Commercial Bank 6.5 Revision Test 7. The Rate of Interest 7.1 Introduction 7.2 'Real' Theories of the Rate of Interest 7.3 Monetary Theories of the Rate of Interest 7.4 The Two Approaches Compared 7.5 Revision Test 8. The Significance of Money in the Economy 8.1 Introduction 8.2 The Classical Quantity Theory 8.3 The Keynesian System 8.4 Modern Monetarism 8.5 Conclusion 8.6 Revision Test 8.7 Appendix to Chapter 8 Part 3: Fiscal and Monetary Policy 9. Fiscal Policy and the National Debt 9.1 Introduction 9.2 Fiscal Policy 9.3 Central Government Borrowing 9.4 Trading Incomes 9.5 Government Expenditure 9.6 The Budget 9.7 The National Debt 9.8 The Effects of Debt Management 9.9 Revision Test 10. A Consideration of Monetary Policy 10.1 The Development of Monetary Policy 10.2 The Relationship between Objectives and Policies 10.3 The Terminology of Policy-Making 10.4 Conclusion about Monetary Policy 10.5 Revision Test 11. Monetary Policy Techniques 11.1 Introduction 11.2 Specific Techniques 11.3 General Techniques 11.4 Conclusions 11.5 Revision Test 12. The Operation of Monetary Policy in the UK Since 1945 12.1 Introduction 12.2 The Radcliffe Report, 1959 12.3 Competition and Credit Control, 1971 12.4 Developments since 1971 12.5 The Revival of Monetarism 12.6 Revision Test Part 4: International Monetary Relations 13. The Balance of Payments 13.1 The Nature of International Monetary Relations 13.2 The Balance of Payments of a Nation State 13.3 The Foreign Exchange Market 13.4 Adjusting a Disequilibrium 13.5 The International Reserve Standard 13.6 The Balance of Payments and the Domestic Economy 13.7 Revision Test 14. European and International Monetary Institutions 14.1 The International Monetary System 14.2 The International Monetary Fund 14.3 The 'World Bank' 14.4 The General Agreement on Tariffs and Trade 14.5 The European Monetary System 14.6 Currency Parities 14.7 Economic Convergence 14.8 Stage II of the European Monetary System 14.9 Intervention Arrangements in the European Monetary System 14.10 The European Investment Bank 14.11 Revision Test 15. Exchange Rate Systems 15.1 Introduction 15.2 The Theory of Rates of Exchange 15.3 Floating Exchange Rates 15.4 A Role for Gold 15.5 Revision Test 16. Capital Movements and International Aid 16.1 Introduction 16.2 Long-term Capital Movements 16.3 Short-term Capital Movements 16.4 Government Influences over Capital Movements 16.5 Capital Movements for Overseas Aid 16.6 Multilateral Aid and its Institutions 16.7 The Very Poor 16.8 Conclusion 16.9 Revision Test 17. International Banking 17.1 The Pattern of International Banking in the 1980s 17.2 Forces for Change in Banking Today 17.3 Universal Banking 17.4 Dealings on the Eurocurrency Markets 17.5 A Review of World Banking at the Start of the 1980s 17.6 Revision Test Part 5: The Monetary Environment 18. Banking in its Economic Environment 18.1 The Concept of the Claimant 18.2 Assessing the Impact of Claimants 18.3 Revision Test Appendix 1: Revision Questions Index