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Industrial Revolution Free Enterprise The Roots of Affluence American Agriculture Your company slogan Industrial Revolution The birth of the United States and the publication of Adam Smith’s book came at a time when yet another kind of revolution was taking place, the Industrial Revolution. Your company slogan Reasons for Industrial Revolution Some early decisions by American social and political leaders planted the seeds of industrial growth. A tariff(关税) high enough to discourage imports and give domestic industries time to grow. Other Hamiltonian(汉密尔顿函数)measures gave great encouragement to business in general. The Industrial Revolution in England brought many changes to American industry between 1776 and 1860. Your company slogan Development of Industrial Revolution One key development was the introduction of the factory system, which gathered many workers together in one workplace and produced goods for distribution over a wide area. A second development was the “American system” of mass production which originated in the firearms industry about 1800. the new system required precision engineering to create parts that were interchangeable. Your company slogan Development of Industrial Revolution A third development was the application of new technologies to industrial tasks. A fourth development was the emergency of new forms of business organization, notably the bank and the corporation, which facilitated the growth of industry. Finally, the construction of railroads beginning in the 1830s, marked the start of a new era for the United States. Your company slogan Free Enterprise Most Americans think that the rise of their nation as a leading producer of manufactured goods, food and services could not have occurred without the economic freedom of capitalism ----which many prefer to call free enterprise自由企业 . Your company slogan Development of Free Enterprise The story of American economic growth is a story of people inventing new devices and processes, starting new business and launching new ventures. For each of these endeavors, money is needed. That money is known as capital. Individuals started enterprises with money borrowed from others. They share the profit gained with those investors. When they wanted to expand their businesses, they again borrow money. Your company slogan Very early, people in the United States saw that they could make money by lending it to those who wanted to start or to expand a business. That led to the creation of an important part of the current economic scene: the selling of stock, or shares, in a business. Knowing about business is important if one wishes to make a profit in the stock market. Many problems accompanied the development of modern American industrial capitalism during the past century. Your company slogan The Roots of Affluence The vast dimensions and ample(丰裕的 ) natural resources of the United States proved from the first to be a major advantage for national economic development. A population of more than 250 million people provides both workers and consumers for American business. Rapid growth helped to promote a remarkable mobility(流动能力) in the American population----a mobility that contributes a useful flexibility to business life. Your company slogan The Roots of Affluence The American people have possessed to an unusual degree the entrepreneurial(企业家的 ) spirit that finds its outlet in such business activities as manufacturing, transporting, buying and selling. Some have traced this entrepreneurial drive to religious sources. A variety of institutional factors have favored the success of American business and industry. One result was a rapid accumulation of capital, which could then be used to produce further growth. Your company slogan American Agriculture American agriculture assumes a richness and variety unmatched in most other parts of the word. In part, this is due to the vastness of the nation itself; in part, it is due to the generosity of nature. American agriculture is, by any standards, big business. Indeed, the term “agribusiness(农工联合企业) ” has been coined to reflect the large-scale nature of agricultural enterprise in the modern U.S. economy. Your company slogan Benefits Both American and foreign consumers benefit from the American farmers, low-cost output. The standard of living of American farmers is generally high. The readiness of many farmers to adopt new technology has been one of the strengths of American agriculture. Your company slogan Your company slogan Your company slogan Your company slogan Your company slogan Problems While the high productivity of American agriculture has kept food prices low for consumers, farmers have been perhaps too successful. A period of economic difficulty began in the early 1980s. Agricultural exports declined, partly due to the high value of the United States dollar (which raised the cost of American products to foreign buyers). Crops prices fell and interest rates rose. Your company slogan Problems In 1987, there were slightly more than 2 million farms in the United States—down by about 7 percent from the number just five year earlier. Many farm owners, especially owners of smaller farms, do not work on the farms full time. Critics accuse both corporate and family farmers damaging the environment. Your company slogan Changes in the American Economy: The Energy Crisis, Deindustrialization(工业能 力的削减), and the Service Economy Stagflation(滞涨(通货膨胀,就业率和 Throughout 1970's, the economy was 商业活动持续低迷) American plagued by the unprecedented combination of soaring prices, the high unemployment, and low economic growth. Economists dubbed the phenomena "Stagflation," a period of rising prices in a stagnant economy. The high standard of living in the US following World War II suddenly began to lag behind that of Western Europe and Japan. Americans found it increasingly difficult to sustain a middle class lifestyle. Your company slogan Stagflation Compare the rates of inflation between 1972 and 1980 to those of the 1980's and 1990's. Your company slogan Stagflation GDP measures the total market value of all the goods and services produced within a region. Note the sharp decline in GDP beginning in 1973. Your company slogan Stagflation In 1975, unemployment reached almost 9%, the highest level since the Great Depression at that time. Your company slogan The Oil Crisis Begins By the late 1950's, the demand for oil in the United States outstripped domestic production capabilities. By 1970's, the US imported a third of its oil, making the American economy vulnerable to geopolitical upsets in the Middle East. Your company slogan The Oil Crisis Begins On October 6, 1973, the Yom Kippur War began when Egypt and Syria attacked Israel from two sides. The US airlifted supplies to Israel, prompting OPEC to levy an oil embargo against Israel's allies that lasted until March 18, 1974. 1973年10月(犹太人的赎罪日) 埃及和叙利亚攻击以色列;以色列 进行反击并击退叙利亚把苏伊士运 河划归为埃及 Your company slogan The Oil Crisis Begins Gas prices suddenly doubled and fueling stations frequently ran out of gas. The oil crisis effected almost every sector of the economy . Your company slogan Coping with the Energy Crisis The oil embargo(禁运 ) led to dramatically increased prices for all types of fuel, including gasoline, home-heating fuel, and electricity. Prices for virtually everything else rose in response to high energy costs, causing record inflation. Long lines for gasoline became everyday occurrences. Your company slogan Coping with the Energy Crisis President Nixon appealed to the nation to make sacrifices in the name of conserving energy. He warned that the country was "heading toward the most acute shortages of energy since World War II.” The President asked Americans to reduce air travel, reduce work and school hours, turn down thermostats by 6 degrees, and reduce highway speed limits to conserve energy. Your company slogan Coping with the Energy Crisis Nixon also urged the use of coal and nuclear power rather than the limited commodity of oil. He asked Congress to approve measures for increased exploration and extraction of domestic oil and to relax environmental standards that impeded energy requirements. Your company slogan Economic Policies of President Ford Gerald Ford replaced Richard Nixon in August 1974. Ford attempted to initiate a grassroots anti-inflation campaign, but the Whip Inflation Now (WIN) program was little more than a public relations maneuver调动 . Skeptical(怀疑的) Americans began wearing the red and white WIN buttons upside down to stand for "No Instant Miracles." After a few months, the WIN effort was abandoned as sluggish industrial and business productivity along with rampant unemployment compelled Ford to focus on broader anti-recessionary measures. Your company slogan Economic Polices of President Ford As a Republican, Ford believed that a balanced federal budget and reductions in government spending were the best way to curb inflation. Democrats in Congress favored increased federal spending as a stimulus to economic and job growth. Ford admitted in 1975, “the state of the Union is not good.” Ford vetoed more major bills than any president in the 20th century. Despite the legislative battle, recessionary pressures eased somewhat by 1976. Your company slogan Deindustrialization "Deindustrialization" refers to a shift away from a manufacturing-based economy. In the United States and Europe, deindustrialization has preceded a shift to a service-based economy. The trend toward deindustrialization began in the 1960's and continues into the present day, as the service sector (部 门)overtakes the manufacturing sector. Your company slogan Deindustrialization During the 1970's, the oil crisis and the falling productivity of the US manufacturing sector sped the decline of several industries, including steel, automobiles, and electronics. The industrial production index measures the total output of US factories. A decline in production indicates slow economic growth. Your company slogan Deindustrialization Increases in foreign industrial efficiency allowed Europe, Asia, and Latin America to effectively compete by producing quality goods for a lower cost. Many American companies began outsourcing labor to foreign countries to remain competitive. This chart illustrates the balance of trade. The United States increasingly imports more than it exports. Your company slogan Deindustrialization Structural unemployment often spikes during deindustrialization. In this case, "structural unemployment" refers to unemployment that occurs during the transition from a manufacturing to a service economy because workers lack skills, education, experience, or proximity to the new types of jobs available. Your company slogan The Decline of Organized Labor Membership in AFL-CIO Unions AFL-CIO lost over 4 million members between 1970 and 1982. Along with declining membership came decreased political power for organized labor. Your company slogan The Service Economy Economies in the developed world typically change over time. Agrarian economies first transition to industrial, then develop into service economies. Service industries include retail, wholesale, banking, public utilities, entertainment, etc. This graph shows the eclipse of the manufacturing sector by the service sector by the early 1980's. The trend toward deindustrialization resulted in a service-based economy. Your company slogan The Rustbelt and the Sunbelt Your company slogan Your company slogan The Rustbelt美国中西部诸州 and the Sunbelt阳光地带(指美国南部和西南部地 区) The economic region known as the Manufacturing Belt became known as the Rust(使)生锈 Belt by the 1970's, as manufacturing and heavy industry declined due to high energy costs and foreign competition. Cities in the Rust belt were subject to unemployment, underemployment in lowpaying service jobs, "white flight" to the suburbs, and general out-migration as manufacturing jobs moved south and abroad. Your company slogan The Rustbelt and the Sunbelt Meanwhile, Sunbelt states in the West and Southwest continued to enjoy the economic growth trend spurred by Cold-War defense spending and an influx of retirees. The South profited from a booming agribusiness industry and the California's Silicon Valley became the hub of the technology industry. As population in the Sunbelt increased, so did the region's political influence. Your company slogan Working Women High inflation, a series of recessions, and the changing role of women in society encouraged more females to enter the workforce throughout the 1970's. Working women became the norm, as more households depended on two incomes. Your company slogan Working Women Women, especially women of color, continue to make substantially less money than their male counterparts. Several factors account for this wage gap, including discrimination and female concentration in lowwage, non-union industries. Your company slogan The Feminization of Poverty Despite increased participation in the labor force and the progress made during the women's movement, women experienced a decline in economic status during the 1970's. Your company slogan The Feminization of Poverty Low pay and inflation combined with increased rates of divorce and teenage pregnancy led to a phenomena known as "the feminization of poverty," as females became increasingly economically marginalized. Your company slogan Economic Policies of President Carter As a rhetorical device during 1976 presidential campaign, Governor Jimmy Carter combined the rate of inflation (6%) and unemployment (8%) into a "Misery Index" of 14. At first, Carter modeled his economic recovery program after FDR's New Deal by advocating tax cuts, public works, and employment programs to stimulate the economy. The Democratic Congress responded with legislation in accordance with the President's plan, but as unemployment decreased, inflation continued to rise. Your company slogan Economic Policies of President Carter In response, Carter tried an almost opposite approach. He attempted to curb inflation by slashing government spending, deregulating industries, and implementing wage and price controls. Many Democrats were alienated by what they perceived as a shift to the right in presidential policies. Despite the President's sincere efforts, the "Misery Index" soon rose to 21. Your company slogan President Carter and the Continuing Energy Crisis Although the oil embargo had ended and gas lines had ceased by Carter's presidency, the threat created by US energy dependence loomed on the horizon. Carter characterized the energy crisis as "the moral equivalent of war," which critics derisively nicknamed "meow." His calls for sacrifice and conservation were opposed by the influential oil and auto industries, and accordingly the subsequent National Energy Act of 1978 focused on increasing domestic production rather than conservation. Your company slogan President Carter and the Continuing Energy Crisis Carter was successful in creating the Department of Energy as a cabinet-level position, and he continued to try and set an example for citizens by conserving energy in the White House. President Carter had solar panels installed atop the White House in 1979 (which President Reagan later removed). Your company slogan President Carter and the Continuing Energy Crisis Following the 1979 Islamic Revolution in Iran, Ayatollah Khomeini stopped all oil shipments, further exacerbating US energy woes. In July the president delivered a televised address that became known as the "Malaise Speech," in which he entreats Americans to share the responsibility of energy conservation. The public and the press responded defensively and Carter's approval rating plummeted. Although the speech was a frank diagnosis of the country's ills, Carter was criticized for "blaming" the American people and offering few solutions. Your company slogan UK Domestic Economy Economic System The British economic system is in nature capitalist. Britain’s economic system consists of two sectors: the public sector and the private sector. Your company slogan Economic System About 1/3 of all goods and services are produced by central-owned corporations. A third of all people who contribute to the economy by their work are employed by publicly-owned bodies. Most energy production is socialized: production and distribution of electricity and gas, production of coal, part of the production and distribution of oil and the iron and steel production industry. Your company slogan Economic System The other 2/3 of the economy is within the private sector, shared unequally between public companies, private companies, and individuals. Much the greater part of this is owned and controlled by public companies. At least one-tenth of the economy is owned by foreign companies, mostly American, or by multinational companies. Your company slogan Industry Coal-mining Petroleum-mining Power Textile industry Manufacturing Your company slogan Coal-mining Once the largest coal producer in the world Most important coalmines can be found in Central Scotland, Central England and South Wales. Now also one of the major mining industries It loses money and the Government has to shut down some collieries煤矿工人 Your company slogan Petroleum-mining Has no large land-based oilfields Brought ashore oil from the North Sea in 1975, now oil has become the principal mineral in Britain Natural gas is produced in association with petroleum Oil reserves are nationalized and most of oil mining is under the control of the government Your company slogan Power Britain ranked second in Europe after Germany in electricity production 65% of all coal mines is used to generate electricity 14% of all electricity is derived from nuclear power Large oil-powered generating stations are located near London, Southampton and other ports Hydroelectricity contributed about 4,643,000 KWH of the total Your company slogan Textile industry Britain once led the world in textile industry and possessed over half of the total spindles of the world. From the 12th to 19th century, the woolen industry was of vital importance. Now Britain’s wool industry is still important in its national economy. Your company slogan Manufacturing(1) Avery long history in manufacturing, a strong basis for the country’s national economic development. Workers engaged in manufacturing number 8.5 million, about 31% of the total labor force. Largest manufacturing industry is iron and steel, exports a large proportion of its steel, 25% of the total, either directly or in the form of finished products. Your company slogan Manufacturing(2) Britain has a large motor vehicle industry About 1/3 of its cars are for exports, but also imports many cheap cars. The most famous are Austin Morris奥斯汀和莫里 斯 , Range Rover路虎, Dodge and Rolls Royce. Rolls Royce are very expensive cars specially designed for the extremely rich and important officials. Your company slogan Manufacturing(3) Other highly developed manufacturing industries including: Mechanic engineering Electrical and electronic engineering and shipbuilding industries Food processing and papermaking Each having its share in the national economic development Your company slogan Agriculture(1) Agriculture remains important. It is highly mechanized, including: Crop farming Livestock farming Forestry and Fishing Your company slogan Agriculture(2) The main agricultural products are wheat, barley, oats, peas, beans, vegetables, sugar beets and green fodder crops. Most of them are grown in the east and south of England, east coast of Scotland, Lancashire and Cheshire plains. Your company slogan Agriculture(3) Many British farmers are still concerned both with animals and with crops. The average farmer has to work very hard: Ploughing, sowing, harvesting Cows to be killed, pigs and poultry to be fed Machinery, buildings, hedges and ditches to be repaired Markets to be visited for the buying and selling Your company slogan Agriculture(4) Britain’s animal husbandry农牧业 constitutes an important part of the nation’s agriculture. The highland zone is covered by grassland Owing to the mild climate and abundant rainfall, the area is green all the year round. Now about 3/5 of full-time farmers are devoted to dairying牛奶业, beef cattle and sheep. Your company slogan Agriculture(5) Forestry is of minor national importance, but has given useful employment in remote districts that have been reforested. Fishing has been a major activity. Major fishprocessing industries are l9cated in Aberdeen, Grimsby, Hull, and Yarmouth. International tensions over access to fishing grounds in the North Atlantic and Arctic threaten the industry. Your company slogan mixed economy Britain’s ‘mixed economy’ – an economy in which there is some public ownership as well as privately owned business During the 20th cent. the government has become involved in the economy through introduction of social welfare policies and laws to regulate industrial relations In 1945 to ensure full employment, labour govern. began to nationalise key industries such as coal, steel and transport. Your company slogan A1 Introduction cont changing of winds By the end of the 1970’s Margaret Thatcher had started to sell back those industries to the private sector, to beat inflation, which was her primary objective. “ In politics if you want anything said, ask a man. If you want anything done, ask a woman” Margaret Thatcher Your company slogan A 2 Natural Resources & Infrastructures基础设施 Highly developed & efficient main road and rail network and airports-- excellent infrastructure Natural resources Principal resources at present -- oil and gas in the North Sea, on the coast of Scotland Large amount of coal, but has been kept for future use Manufacturing still playing important role Services, industries such as chemicals, electronics, etc all doing well, important parts of British economy Your company slogan A3 Finance Importance of institutions of City of London cannot be over-emphasised known as the world’s leading international financial centre Over 550 international banks and 170 global securities houses have offices in London BANKING Your company slogan A3 Finance FOREIGN EXCHANGE The London foreign exchange market is the largest in the world, with daily turnover of $504bn in April 2001, accounting for 31% of global turnover, more than New York and Tokyo combined. Your company slogan A3 Finance London is the world's largest fund management centre, with $2,460bn of institutional equity holdings in 1999. Assets managed in the UK on behalf of domestic and overseas clients totaled over £2,800bn in 2000. London is the leader in the management of overseas clients nondomestic portfolios投资 组合 . FUND MANAGEMRNT Your company slogan A3 Finance SECURITIES DEALING The number of foreign companies listed on the London Stock Exchange is second only to New York. In the first eight months of 2002, turnover营业额 in these companies booked in London accounted for 56% of all trading in foreign companies around the world. London-based book runners accounted for about 60% of international bonds issued, with 70% of trading in the secondary market, including eurodenominated以外币结算 issues, also based in London. Your company slogan A3 Finance The financial institutions Banks Building society Insurance companies Stock exchange Your company slogan Your company slogan Your company slogan A 4 the Mixed Economy cont Partnerships– Such businesses can raise larger amount of capital and, consequently, are greatly bigger. Partnerships, however, suffer in the same way as do single proprietorships in that each partner is legally liable for all the debts of the firm, even if they have been incurred by the activity of another partner. Your company slogan A 4 the Mixed Economy cont Co-operatives Such businesses operate mainly in the retail trade. The most distinctive feature of cooperative societies is that they belong, in a sense, to some of their customers who pay a minimum deposit on a share in the business. Consumer co-operatives have proven to be rather vulnerable in the face of the intense competition from other types of organisation. Your company slogan A 4 The Mixed Economy cont Joint stock companies Such businesses make large amounts of capital much easier to raise. For these companies, transfer of ownership can take place with a minimum of formality. In other words, shareholders can sell their shares to anyone else. but there also lies a risk here. Some unscrupulous company promoters may fraudulently try to raise funds for their own ends from the public. (Source: An Introduction to the UK Economy by Harbury and Lipsey ) Your company slogan A 4 The Mixed Economy cont Nationalization the acquisition of private companies by the public sector Privatization the return of state enterprises to private ownership and control Your company slogan A 4 The Mixed Economy cont Why nationalise? The post-war Labour government was elected on a socialist manifesto (see also Chapter 11 ‘Welfare’), which promised more political control over the major public utilities so that their development could be guided in the public interest rather than simply for private profit Those industries which were nationalised had managing directors appointed by the government and, whilst they were left to run their own affairs on a day-to-day basis, they were accountable to the government concerning more long-term policy. Your company slogan A 4 The Mixed Economy cont Reasons for nationalization Natural monopoly Externalities e.g. subsidizing public transport (London Underground) may be a second-best option to road pricing. Equity or distributional consequences e.g. protecting transport in rural areas Co-ordinating a network e.g. British Rail could have an overview of the whole rail system Your company slogan A 4 the Mixed Economy Why privatise? The main argument used by the ‘privatisers’ is that nationalised industries are economically inefficient, when compared to companies operated under private commercial influences. As mentioned above, the Conservative governments of the 1980s regarded decreasing state involvement in the economy as a key component of their policies This would enable private companies to compete in a free-market environment, where consumers of goods and services decide what is useful or desirable. Prices should be determined by what people are willing to pay, rather than based purely on cost. Your company slogan A 4 The Mixed Economy cont Reasons for privatization Improve incentives for production efficiency makes managers accountable to shareholders. but sheltered monopolies will be sleepy no matter who owns them so privatization will be most successful where there is potential for competition. Pre-commitment by government not to interfere for political reasons Your company slogan Potential or possible advantages of privatisation It gives ordinary people a direct stake in the nation’s means of production and distribution. It frees those responsible for the industry concerned from the constraints imposed by State ownership, including governmental intervention in day-to-day management, and protects them from fluctuating political pressures. It releases those industries from the restrictions on financing which public ownership imposes (i.e. they could now raise money in the City instead of only from the Treasury). Your company slogan Potential or possible advantages of privatisation Access to private capital markets makes it easier to pursue effective investment strategies for cutting costs and improving standards of service. The financial markets would be able to compare the performances of individual sectors of a privatised industry against each other and also against those of other sectors of the economy, thus providing a financial spur to improved performance. A system of economic regulation would ensure that the benefits of greater efficiency were passed on to the public in the form of lower prices and better service. Your company slogan Potential or possible disadvantages of privatisation In effect, privatisation is simply selling back to people what was already their own property. Were the government to allow the managements of nationalised industries a genuinely free hand to run them on proper business lines, there would be no need to privatise them. Most, if not all, of the advantages cited above could be achieved perfectly well without privatisation Your company slogan Potential or possible disadvantages of privatisation There is not the slightest evidence that widening the number of people shares has any effect on political attitudes or labour relations. In reducing strikes or raising productivity, such factors as better management and better arrangements for collective bargaining, have far more relevance. The true weight of the supposed ‘co-ownership’ is very, very light. As one financial writer observed: If all these worker-shareholders decided to sell their entire stock (of a company) on the same day, ‘it is doubtful whether it would even register on the Stock Exchange’. Your company slogan A 5 The Role of the Government Taxation & Government Expenditure Despite the different attitudes towards nationalisation, government influence in the economy has grown during the twentieth century. (see graph on p 207) During the two World Wars, the proportion of income from economic activity devoted to government expenditure not surprisingly showed sudden increases, to reach a peak of 46 per cent in 1918 and 61 per cent in 1942 to 1944. However, although the proportion fell back after each war, in each case it never went back to its pre-war level. Your company slogan Taxation & Government Expenditure Throughout the 1980s and early 1990s, an aim of government policy was to reduce the share of public expenditure of GDP and the proportion fell from 46 per cent in 1981 and 1982 to 38 per cent in 1983. There was a slight rise in the early 1990s during the period of economic downturn, but in 1998 the proportion had fallen back again to 39 per cent. Your company slogan Taxation & Government Expenditure Where does the government get its money from? Stock exchange Taxation -- Direct and Indirect Taxes Direct taxes – national insurance contributions, income tax (a ‘progressive taxation system), corporation tax (paid by companies) Your company slogan Taxation & Government Expenditure Indirect taxes -- VAT (VAT was introduced following Britain’s membership of the EEC: a percentage of the money raised is contributed to the European Union budget.) , duties on alcohol, tobacco, petrol, etc. Your company slogan Taxation & Government Expenditure Government spending Some of the main areas of expenditure for 1999-2000 were: social security £102 billion (29% of total) health £61 billion (17%) education £41billion (12%) defence £21 billion(6%) Your company slogan GDP Growth GDP Growth Average Earning Your company slogan A6 Consumer Since 1971 household expenditure has increased in real terms in all the broad categories of expenditure with the exception of tobacco Some categories of goods and services have grown faster than others. For example, spending on financial services and UK tourists’ expenditure abroad was almost five times and almost six times higher respectively in 1999 than in 1971. In contrast, expenditure on food increased by only a quarter in real terms over the period. Your company slogan A6 Consumer Look at the table “Student’s expenditure” on page 210 British students have very specific spending patterns. According to the Student Income and Expenditure Survey, around half of the expenditure by students under the age of 26 in higher education in 1998/99 was on what could be termed “essential items”, such as accommodation, food, bills and household goods and course expenditure. Students now pay a larger contribution towards their tuition, so from 2000 the course expenditure would be a higher percentage, but it is still mostly paid for by the government, Students who lived at home with their parents spent on average a quarter of the amount on housing of that paid by students living independently as they were subsidized by their parents. Your company slogan Credit Card Revolution Consumer Protection guaranteed by the Consumer Protection Act The Credit Card Revolution leading more to Debt Problem Your company slogan The Bank of England Whilst all the important institutions mentioned so far are privately owned commercial bodies, the Bank of England is not. It is the central bank of the UK — a nationalised industry operated on behalf of the government. The Bank of England controls the currency and acts as banker both to the government and to the commercial banks. It also plays a key role in the government’s monetary policy. It aims to maintain the integrity and value of the currency, maintain the stability of the financial system and ensure the effectiveness of the financial services sector. Your company slogan The Bank of England The Bank of England has a monopoly of the bank-note issue in England and Wales, though certain banks in Scotland and Northern Ireland have limited issuing rights. Fundamental changes to the Bank’s role took effect under the Bank of England Act 1998. In particular it acquired operational responsibility for setting interest rates. Your company slogan