video record
Media not available in the Digital Archive
Description
The role of banking in the supply of money to industry is examined. A fictional example is used to illustrate the points.
Metadata describing this Open University video programme
Module code and title: D282, National income and economic policy
Item code: D282; 05
First transmission date: 04-06-1972
Published: 1972
Rights Statement:
Restrictions on use:
Duration: 00:24:29
+ Show more...
Producer: Peter Ramsden
Contributors: K. B. Cox; David R. Croome; J. J. Higgs; G. E. Bullard; A. Crockett
Publisher: BBC Open University
Keyword(s): Banks; Economic policy; Macro economics; Money supply
Footage description: Film sequence: David Croome walking down a London street (not identified) and entering a branch of Barclay's Bank. With the manager, Croome discusses a proposed business loan of £2,000. Croome (over film of the continuing interview with the bank manager) examines the mechanism of the hypothetical £2000 loan; an animated diagram is also used to make the explanation clearer. In an interview with Mr Cox, Group Treasurer of a large London clearing bank (Barclays), David Croome discovers the constraints on the banks to prevent them expanding loans and making nett additions to the money supply without limit. Over an animated diagram Mr. Cox explains the structure of his firm's assets. Mr. Cox, in response to Croome's question, analyses in greater detail the make up of his bank's reserve asset base. A table illustrates what Cox is saying. Mr. Cox explains how reserve assets restrict the ability of the clearing banks to make loans, and how reserve assets can be drained. A diagram is used to illustrate his points. In response to a further question from Croome, Mr. Cox outlines what he sees as the determinants of the supply of reserve assets to his bank. Croome explains what is meant by open market operations in banking before Mr. Cox indicates the importance of the discount houses to the clearing banks. Croome uses the bond market in his illustration; an animated diagram is used to clarify the points. Croome now turns to an interview with Mr. Bullard, chairman of a leading London discount house. Mr. Bullard explains the activities of a discount house. Mr. Bullard also explains the role of the discount house with respect to the reserve asset base and the Bank of England's control of the money supply. Croome now interviews Andrew Crockett, an official of the Bank of England. In response to questions, Crockett outlines the main functions of the Bank of England. Andrew Crockett discusses the money supply and explains how the Bank of England can affect indirectly the supply of money. Croome asks how the Bank of England sets about manipulating the rate of interest to achieve a desired level. Crockett replies. David Croome sums up the programme. Credits.
Master spool number: 6LT/70666
Production number: 00521_2241
Videofinder number: 139
Available to public: no