IDEAS home Printed from https://ideas.repec.org/a/mes/postke/v37y2014i1p91-114.html
   My bibliography  Save this article

Quantitative easing through the prism of the Barings crisis in 1890: central banks and the international money market

Author

Listed:
  • Ramaa Vasudevan

Abstract

This article investigates the response of the Central Bank at the center of the network of international money markets in times of crisis. The Bank of England's response to the impending collapse of the Barings Bank in 1890 involved not just a bank-brokered loan guarantee but also a change in the rules and manner of intervention in the market for bill discounting that constituted a significant element of the unregulated money market of the time. Quantitative easing in the current context also marks the attempt by the Federal Reserve to tame the shadow banking system by intervening directly in these markets. Based on this historical analogy, we draw some lessons about the nature and limitations of central bank response.

Suggested Citation

  • Ramaa Vasudevan, 2014. "Quantitative easing through the prism of the Barings crisis in 1890: central banks and the international money market," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 37(1), pages 91-114.
  • Handle: RePEc:mes:postke:v:37:y:2014:i:1:p:91-114
    DOI: 10.2753/PKE0160-3477370107
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/PKE0160-3477370107
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arora, Mohit, 2016. "Changing Rules of the Game of Global Finance: Glimpses from a Sovereign Debt Restructuring Episode," MPRA Paper 73181, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:37:y:2014:i:1:p:91-114. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/MPKE20 .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.