the bank of england became independent in 1998.
the bank of england became independent in 1998.
when did the bank of england become independent?
1998
the bank of england provides finance and support to, and may influence interest rates of the private banks through monetary policy. it was originally established as a corporation with private shareholders under the bank of england act 1694, to raise money for war with louis xiv, king of france. after the south sea company collapsed in a speculative bubble in 1720, the bank of england became the dominant financial institution, and acted as a banker to the uk government and other private banks. this meant, simply by being the biggest financial institution, it could influence interest rates that other banks charged to businesses and consumers by altering its interest rate for the banks' bank accounts. it also acted as a lender through the 19th century in emergencies to finance banks facing collapse. because of its power, many believed the bank of england should have more public duties and supervision. the bank of england act 1946 nationalised it. its current constitution, and guarantees of a degree of operational independence from government, is found in the bank of england act 1998. under section 1, the bank's executive body, the "court of directors" is "appointed by her majesty", which in effect is the prime minister. this includes the governor of the bank of england (currently mark carney) and up to 14 directors in total (currently there are 12, 9 men and 3 women). the governor may serve for a maximum of 8 years, deputy governors for a maximum of 10 years, but they may be removed only if they acquire a political position, work for the bank, are absent for over 3 months, become bankrupt, or "is unable or unfit to discharge his functions as a member". this makes removal hard, and potentially a court review. a sub-committee of directors sets pay for all directors, rather than a non-conflicted body like parliament. the bank's most important function is administering monetary policy. under bea 1998 section 11 its objectives are to (a) "maintain price stability, and (b) subject to that, to support the economic policy of her majesty’s government, including its objectives for growth and employment." under section 12, the treasury issues its interpretation of "price stability" and "economic policy" each year, together with an inflation target. to change inflation, the bank of england has three main policy options. first, it performs "open market operations", buying and selling banks' bonds at differing rates (i.e. loaning money to banks at higher or lower interest, known "discounting"), buying back government bonds ("repos") or selling them, and giving credit to banks at differing rates. this will affect the interest rate banks charge by influencing the quantity of money in the economy (more spending by the central bank means more money, and so lower interest) but also may not. second, the bank of england may direct banks to keep different higher or lower reserves proportionate to their lending. third, the bank of england could direct private banks adopt specific deposit taking or lending policies, in specified volumes or interest rates. the treasury is, however, only meant to give orders to the bank of england in "extreme economic circumstances". this should ensure that changes to monetary policy are undertaken neutrally, and artificial booms are not manufactured before an election.
united kingdom enterprise law
one view for the transfer of memories from hpc-dependent to independent is that the strength of memories changes across the hpc and non-hpc systems, with damage to the hpc. in a study by lehmann and colleagues (2009) adult male rats were put through contextual fear conditioning using feet shocks. if there was hpc damage and the rats experienced 11 sessions worth of shocks in one session, retrograde amnesia resulted. however, if there was damage in the hpc and shocks were applied over many conditioning sessions, then the memory for the contextual fear conditioning was not affected. so within the numerous conditioning sessions, the memory for contextual fear conditioning may have been formed by the non-hpc memory systems. specifically memory representations in the non-hpc systems may be strengthened and eventually become independent of the hpc, which normally overshadows/interferes with the non-hpc systems in forming representations of memories in contextual fear conditioning. conversely another view is that memories become independent of the hpc over time due to a reorganization of stored memories. alternatively others believe memories change characteristics to become independent of the hpc, specifically in becoming less precise, more general and context free memories in non-hpc systems, assuming that the hpc is required for precise, detailed, contextual memories.
between-systems memory interference model