Advanced Search
MyIDEAS: Login

Stabilizing monetary systems: sterling's currency and credit markets from the 12th to the 21st C

Contents:

Author Info

  • Anthony Hotson

    ()
    (Wolfson College, Oxford)

Registered author(s):

    Abstract

    This paper seeks to highlight a design feature of monetary systems that was prevalent from medieval times until the 20th century, but has since fallen into abeyance. The lost piece of functionality in modern monetary systems is a mechanism for stabilizing the value of assets that form the main counterpart of money, without giving rise to perverse incentive effects. Understanding how this mechanism works is confused by the many guises taken by money and its credit counterparts around the world, and the radical changes in their form over the centuries. This paper seeks to illustrate the stabilization mechanism by presenting an analytical history of sterling’s currency and credit markets from the 12th C to the present day. For the purposes of this study, the methods used to stabilize the value of banking assets are examined with reference to four types of banking institution: the Royal Mint, the Bank of England, clearing banks and building societies. The stability of these four is then contrasted with the predicament of the retail and shadow banks of the post-1980 era. The paper concludes that policymakers should pay more attention to stabilizing the value of bank collateral.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.econsoc.hist.cam.ac.uk/docs/CWPESH%20number%2011%20Sept%202012.pdf
    File Function: None.
    Download Restriction: None.

    Bibliographic Info

    Paper provided by Department of Economic and Social History at the University of Cambridge in its series Working Papers with number 11.

    as in new window
    Length: 26,000
    Date of creation: 16 Sep 2012
    Date of revision:
    Publication status: Published in Cambridge Working Paper in Economic & Social History, No. 11
    Handle: RePEc:cmh:wpaper:05

    Contact details of provider:
    Web page: http://www.econsoc.hist.cam.ac.uk/
    More information through EDIRC

    Related research

    Keywords: Monetary systems; Mint; Bank of England; clearing banks; building societies;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cmh:wpaper:05. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Price).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.