The Analysis of Structural Changes in the Reserves of the Bank of England

Year 2021, Volume: 28 Issue: 4, 797 - 814, 30.12.2021

Mehmet Çetin

https://doi.org/10.18657/yonveek.896221

Abstract

Bank of England, one of the leading examples of modern banking, has been established at the end of the 17th century. Economic and social turmoils and wars that broke up in the first half of the 19th century have led to a serious debate between the Currency School and Banking School regarding the primary function of BoE. The Bank Charter Act dated 1844 has been enacted to eliminate the ongoing instabilities in the British economy. The act was suspended in 1847, 1857, and 1866 because of the developments. In this study, the effects of economic and non-economic developments on the Bank’s reserves are investigated using the structural breakpoint tests for the period between 1844 and 1866. To detect the presence of any regime shifts in both series mean and variance, the Bai and Perron and ICSS algorithm procedures were employed. The findings of the study reveal the effects of domestic and foreign military, political and economic developments directly affecting the UK, on the reserves of the Bank.
Key Words: Bank of England, The Bank Charter Act of 1844, Structural breaks.
JEL Classification: N23, E58, E52

Keywords

Bank of England, Structural Breaks, The Bank Charter Act of 1844

İngiltere Merkez Bankası Rezervlerinde Meydana Gelen Yapısal Değişimlerin Analizi

Abstract

17. yüzyılın sonunda teşkil edilen Bank of England, modern bankacılığın önde gelen örneklerindendir. 19. yüzyılın ilk yarısında gerçekleşen ekonomik ve toplumsal çalkantılar ve savaşlar, Bankacılık ve Para okulları arasında BoE’nin öncelikli işlevinin ne olduğuna dair ciddi bir tartışma başlatmıştır. 1844 tarihli Bankacılık Yasası İngiliz ekonomisinde süregelen istikrarsızlığı ortadan kaldırmak amacıyla yürürlüğe konulmuştur. Yasa, 1847, 1856 ve 1866 yıllarında yaşanan gelişmelere bağlı olarak askıya alınmıştır. Bu çalışmada ekonomik ve ekonomi dışı gelişmelerin bankanın rezerleri üzerindeki etkileri 1844-1866 dönemi için yapısal kırılma testleri yardımıyla araştırılmıştır. Serilerin ortalamalarında ve varyanslarında meydana gelen rejim değişikliklerinin tespit edilebilmesi amacıyla Bai-Perron testi ve ICSS algoritması kullanılmıştır. Çalışmanın bulguları, İngiltere’yi doğrudan etkileyen iç ve dış askeri, politik ve ekonomik gelişmelerin Bankanın rezervleri üzerindeki etkilerini ortaya koymaktadır
Anahtar Kelimeler: İngiltere Merkez Bankası, Yapısal Kırılmalar, 1844 Bankacılık Yasası
JEL Sınıflandırması: N23, E58, E52

Keywords

Bank of England, Yapısal Kırılmalar, 1844 Bankacılık Yasası

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