The Bank of England Over 325 Years

10 Pages Posted: 19 Oct 2018

Date Written: October 2018


The Bank of England's emergence as a central bank was the end of a long process that began soon after its founding in the late seventeenth century and continued until the third quarter of the nineteenth century. Its current two core principles emerged at different times. Monetary stability came first, a consequence of its responsibility for the gold standard. Financial stability followed in the course of the nineteenth century as the Bank slowly acquired the role of lender of last resort. Its mandate was a consequence of the two‐way relationship with government and some external forces.

Keywords: central bank mandates, financial stability, lender of last resort, monetary stability

JEL Classification: E58, G21, N23, N24

Suggested Citation

Capie, Forrest, The Bank of England Over 325 Years (October 2018). Economic Affairs, Vol. 38, Issue 3, pp. 357-366, 2018, Available at SSRN: or

Forrest Capie (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom
020 7601 3680 (Phone)

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