The total amount of money that a country's government has borrowed. The Bank of England was created to manage England's growing national debt.
Promissory notes, issued by a bank and payable to the bearer on demand, that circulate as money.
Money in the form of coins rather than notes, specifically gold and silver.
A national bank that provides financial services for its country's government and commercial banking system. The Bank of England was the first effective model for this.
A type of cryptocurrency whose value is pegged to another asset, often a stable currency like the U.S. dollar, and backed by reserves of that asset (such as government debt).
A speculative financial bubble that occurred in Great Britain in 1720, involving the shares of the South Sea Company. Its collapse caused a major economic crisis.
A British joint-stock company founded in 1711, which was at the center of the speculative bubble.
The total amount of money owed by a government. The South Sea Company's plan to take over the national debt was the catalyst for the bubble.
The practice of engaging in risky financial transactions in an attempt to profit from short-term fluctuations in the market value of an asset, rather than from its underlying fundamental value.
A national bank that manages a country's currency and finances. The Bank of England's role as a central bank was strengthened after it survived the South Sea Bubble.
The total amount of money that a country's government has borrowed. In the 18th century, the Bank of England became the primary manager of Britain's growing national debt.
A form of debt issued by a government to finance its spending. The Bank of England facilitated the sale of these bonds to private investors.
The management of a country's money, including its revenue (taxes), spending, and debt.
A large concentration of money and resources available for investment. The Bank allowed the state to mobilize the nation's private capital.
A written order that binds one party to pay a fixed sum of money to another. In the 18th century, bills drawn on London banks became a trusted form of international payment.
The Emperor of France and Britain's primary adversary during the Napoleonic Wars (1803-1815).
Money in the form of coins, specifically gold and silver.
Paper currency issued by a bank. During this period, the Bank of England's notes became fiat currency.
A monetary system where a country's currency has a value directly linked to gold. The suspension of this standard in 1797 was a radical step.
A currency that is not backed by a physical commodity like gold, but by the decree and trust in the government that issues it.
The total amount of money a government has borrowed. It grew to unprecedented levels during the Napoleonic Wars.
A form of debt issued by a government to finance its spending.
Financial aid given by one country to another, a key part of Britain's war strategy.
The total amount of money—including paper notes and coins—in circulation in an economy.
A highly influential classical economist who argued that the over-issuance of banknotes was the primary cause of inflation.
A British parliamentary report from 1810 that investigated the cause of wartime inflation and recommended a return to the gold standard.
The practice of a bank redeeming its banknotes for a fixed amount of precious metal (specie, or gold and silver coins) on demand.
A monetary system where a country's currency value is directly linked to a fixed quantity of gold.
Inflation is a general increase in prices, while deflation is a general decrease in prices. The return to gold caused a period of deflation.
A reduction in the amount of money in circulation, a necessary step to return to the gold standard.
A currency not backed by a physical commodity. The unbacked pound during the Napoleonic Wars was an early example.
A British statesman and Prime Minister who was the architect of the Bank Charter Act of 1844.
A landmark British law that regulated the issuance of banknotes, granting the Bank of England a monopoly and rigidly tying the money supply to the nation's gold reserves.
The total amount of money—including paper notes and coins—in circulation in an economy.
The amount of gold held by a central bank to back its currency under a gold standard.
A monetary system where the value of a country's currency is directly linked to a fixed quantity of gold.
A national bank that manages a country's currency and finances. The 1844 Act finalized the Bank of England's role as a true central bank.
The availability of cash. The 1844 Act's rigidity could sometimes lead to a shortage of liquidity during a financial panic.
A renowned 19th-century British economist and journalist whose 1873 book, Lombard Street, provided the foundational principles of modern central banking.
A national bank that manages a country's currency and finances and acts as the "bank for banks."
A monetary system where a country's currency value is directly linked to a fixed quantity of gold. The Bank of England was the anchor of the 19th-century international gold standard.
The interest rate at which a central bank lends to commercial banks, used as a key tool of monetary policy.
The most critical function of a central bank during a financial panic: providing emergency liquidity to solvent but cash-strapped financial institutions to prevent a systemic collapse.
Financial institutions specializing in international finance, trade, and the issuance of bonds.
A prominent British statesman who served as Chancellor of the Exchequer in the years leading up to World War I, managing the nation's finances during a period of immense strain.
A monetary system where a country's currency is directly linked to a fixed quantity of gold. The geopolitical tensions of the early 20th century put this system under severe pressure.
The amount of gold held by a central bank. Fear of war caused a drain on the gold reserves of many European nations.
Institutions responsible for overseeing a nation's monetary policy. The rise of the German Reichsbank and the U.S. Federal Reserve challenged the Bank of England's dominance.
The central bank of the German Empire from 1876 to 1945.
A brilliant British economist who worked for the Treasury during World War I. His experiences during the war profoundly shaped his later, revolutionary economic theories.
A monetary system where a country's currency is directly linked to a fixed quantity of gold. Britain's suspension of the gold standard in 1914 marked the end of an era.
The total amount of money a government has borrowed. It grew to unprecedented levels during the war.
Debt securities issued by a government to finance military operations during wartime. They were the primary tool for funding the British war effort.
A general increase in prices and fall in the purchasing value of money, which was a significant consequence of wartime finance.
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