Finance

American economist will play a big role at the Bank of England. Adam Posen joins the panel that sets interest rates. (Bloomberg News)

The Bank of England is a historical entity, but as a bank as a role for private investment to support the finances of the country and keep the economy afloat. The bank was founded in 1694 to manage the debt of the British government. While it continues to fulfill this role, its functions have expanded, one of which saw the government in formulating its monetary policy. The Bank also has full control over the issue of banknotes in England and Wales. The Bank of England has a variety of function

Mervyn King, governor of the Bank of England, is noted for its generally restrained and diplomatic language into statements about interest rates and the overall performance of the UK economy. However, it appears that reserve and reticence to change. During the Northern Rock banking crisis in summer 2007, he to his reluctance to intervene and save the bank by the reference to “moral hazard” justified. By this he meant that banks, like any other private organization should be subject