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Interest Rates and Monetary Policy

Published online by Cambridge University Press:  03 October 2014

J. E. Wadsworth
Affiliation:
Midland Bank Limited
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Extract

Two centuries ago, a distinguished son of Scotland made his “Inquiry into the Nature and Cause of the Wealth of Nations”, there bringing together important business interests of actuaries and economists, and so providing justification for addressing you this evening. “The only trades”, wrote Adam Smith, “which it seems possible for a joint stock company to carry on successfully, without an exclusive privilege, are those of which all operations are capable of being reduced to … a routine. … Of this kind is, first, the banking trade; secondly, the trade of insurance.” As we all know, actuaries are a mainstay of insurance undertakings and economists are to be found in the employ of the banks; both, that is, are engaged with companies that are closely involved in movements in the level of interest rates, an involvement where, despite the views of Scotland's revered father of economists, few operations can be “reduced to a routine”!

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1964

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References

page 197 note 1 The Future of the Rate of Interest—J. R. Hicks—Manchester Statistical Society, March 1958.

page 198 note 1 Bank Rate and the Money Market—R. H. I. Palgrave, 1903.

page 198 note 2 A. B. Cramp—Opinion on Bank Rate, 1822–60.

page 199 note 1 A Century of Bank Rate—R. G. Hawtrey (1938).

page 199 note 2 Para. 218. Committee on Finance and Industry. 1931 (Cmd. 3897).

page 200 note 1 Committee on the Working of the Monetary System, Cmd. 827, para. 772.

page 203 note 1 5th October 1961.

page 203 note 2 Para. 553.

page 204 note 1 “Government Debt Policy and the Banking System”, Midland Bank Review—February 1958.

page 204 note 2 Para. 982.

page 204 note 3 Paras. 442/3.

page 206 note 1 Question 8979.

page 206 note 2 Para. 375.

page 209 note 1 English Policy on Interest Rate 1948–62. Banca Nazionale del Lavoro Review, June 1962.