Thomas Tooke

What was the level of Gold backing of the currency at the Bank of England in 1833?

In Gold vs monetary base on April 23, 2012 at 2:56 am

In an old piece of archives dating from 1833 about the pressure on the money markets I found the following data:

Evidently the balance sheet is presented in reverse order compared to today with Liabilities on the left side and assets on the right side. If Circulation is M0 and Deposit sort of M1 component and there is not much more beyond those basic forms of money, we have 10,900,000 / (19,800,000 + 13,000) = 33.23% backing of the deposits and circulation. We will see in some other posts how this evolved over time.


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