Matthey plc, other banks £26.65 million and the Bank of
England, under indemnity as shareholder, £39.15 million.
A decade of deregulation?
However, as a result of the Johnson Matthey debacle, the Chancellor of the Exchequer, Nigel Lawson, set up a committee to review
banking supervision under the chairmanship of the Governor of the
Bank of England. On 20 June 1985, Lawson announced in the House
of Commons that he agreed with the committee’s findings that the
Johnson Matthey debacle had exposed ‘major shortcomings in the
present legislative and supervisory
party organised by Churchill, the chancellor of the exchequer. He was supported by McKenna, chairman of the Midland Bank and himself a former chancellor (Clarke, P. 1988 : 39). Churchill rejected their advice, much later admitting the return to gold was ‘the biggest blunder of his life’ (cited in Clarke, P. 1988 : 41). Keynes’s spelled out his arguments under the polemical title of the Economic Consequences of Mr Churchill . The chancellor responded graciously, inviting Keynes to join his private dining club, which Keynes accepted with alacrity.
Back on gold
, should be … but I don't think anybody saw it crashing like it did … you look back on that and you think blimey that was risky.’ Those present in the Treasury Select Committee said that the housing bubble was frequently discussed. But, according to Lindley, the Exchequer response was that interest levels were low and serviceable, and it didn't want to impede business growth with higher rates. Just as with the dot.com bust of 2000, there was always a reason to explain the bubble.
Officials involved in monitoring financial
channelled into the main government account. If the Consolidated
Fund has a surplus then it is transferred to the NLF to reduce the
government’s borrowing requirements. Similarly, a deficit on
the consolidated fund is financed by a transfer from the NLF. This
arrangement of accounting is called the ‘Exchequer
The DMO’s market objective is to offset the
. Again on Friday 12 September Paulson had spoken to Alistair Darling, then UK Chancellor of the Exchequer, and he had advised that the US Treasury was considering two prospective buyers but that it was unclear whether any transaction could be structured without external support. In response, Darling had advised Paulson that no transaction with Barclays would be possible if the level of risk for Barclays was inappropriate. This was the same cautious message as the one both Sants and McCarthy had given to Geithner. Paulson observes that at that time he did not understand
such a move
would free capital to address the far greater risk posed by instability in Spain
and Italy; it would also permit more expedient reform towards a comprehensive framework for the long-discussed model for ‘economic governance’ and
This harsh appraisal of Greece’s place in Europe was detailed in the
‘Iphigenia scenario’8 – a proposal by the British Chancellor of the Exchequer.
According to this, Greece would have to be sacrificed so the ‘tail winds’ could
return to the EU. The sacrifice of Greece was to take the form of a voluntary
governor and three deputy
governors plus nine non-executive directors appointed by the crown
from a wide range of interests. Note that the non-executive
directors provide the majority. The chair and deputy chair are
selected by the Chancellor of the Exchequer from the non-executive
members. The deputy governors are appointed for five years and the
directors for three years, with the
insights, not least his reassertion of the importance of economic aggregates. The relevant economic whole is ultimately global, it is more than the sum of its national parts, and the capitalist world-system profoundly limits and conditions state capacities.
Bringing in the state
Keynes’s economics recognises the importance of the state. He was responding to real changes in the world and the growth of states which had occurred from the late nineteenth century. Of course, long before Keynes, chancellors of the Exchequer and Treasury secretaries, even those convinced
the exchequer Gordon Brown. New Labour had set its stall on
‘economic proficiency’. Brown had pledged to keep within
the previous Conservative government’s austere spending plans, to
not increase tax on the highest earners and to self-impose strict
financial rules, which would prevent the government
borrowing money to fund spending. 26 Brown’s adherence to his self-imposed
rules put up insurmountable roadblocks to Prescott’s transport
The same policy dilemma was faced in the immediate
the most influential voice in the economic debate’, The Guardian, 15 March 2016.
Available at: http://www.theguardian.com/business/2016/mar/15/britishumpire-how-institute-fiscal-studies-became-most-influential-voice-in-ukeconomic-debate (accessed 24 April 2016).
20 Available at: http://labourmanifesto.com/1997/1997-labour-manifesto.
shtml. Five of these economists are Bank of England employees and four
are appointed by the Chancellor of the Exchequer.
21 Details available at: http://www.bankofengland.co.uk/research/Pages/
economists/default.aspx (accessed 24 April