A) How successful has the government and the Bank of England been in running the British economy over the last two years? B) Describe and evaluate the main macro economic policies used by the British government and the Bank of England over the last two

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Success of Bank of England and British government in running British economy

Introduction

The Bank of England serves the United Kingdom and acts as the central bank . It was created 1694 in to act as the banker to England , and currently is the banker to the UK government . It has had its headquarters in London since 1734 . In 1946 it became state owned and has monopolised issuing banknotes in Wales and England . The bank has a Monetary Policy Committee which manages the

country 's monetary policy In cases where the there are adverse economic circumstances or public interest matters , the committee is given authority by the treasury and parliament to act as it deems fit to correct the situation

The major function of the bank is supporting UK 's economic policies and maintaining stability in prices . This is done by ensuring that there is monetary and financial stability . Monetary stability is achieved by ensuring that the increases in price do not supersede the inflation targets of the government . Financial stability on the other hand is achieved by timely neutralisation of the threats that face the financial system of the country . Monetary and financial stability is achieved by the Bank of England through the use of policy instruments that stimulate the economic environment into achieving the desired results . This is also done through cooperation with the Financial Services Authority and the Treasury

The Bank of England has another function of issuing coins and notes which...