Fast-paced and highly-charged, it is a hotbed of financial activity whose impact is felt not just nationally, but globally. The English precursor to Wall Street, London's Lombard Street is the original district of finance and the birthplace of the money market. In very good condition, contemporary bookplate to the pastedown. First edition of this "undying classic" (J.M. This edition is inclusive of the appendix and all of the original charts.London: Henry S. At the time he published this book in 1873, the UK was the world's foremost economic powerhouse, with rapid industrialization and technological advances underpinning its global prominence. In writing this book, Walter Bagehot sought to demystify an increasingly complex and intricate financial system.
Bagehot goes great lengths to explain this system, which was only discarded following the Great Depression of the 1920s. As a result, the Bank of England kept a vast repository of gold in its underground vaults as a means of solidifying its own influence and economic authority.
In the 19th century, the world's currencies were tied to the gold standard - the value of gold bullion. The eruption of an economic depression, which Bagehot aptly notes is rapidly contagious around different sectors of the economy, can also make working in the bank a lot less tedious. The sudden boom of a market, or sudden fluctuations in the credit system, can create an excited demand for money. Leading on from this, he explains how the Bank of England and other banks - the Joint-Stock and Private banking companies - do the business of finance.īagehot is not afraid to admit that life at the bank is usually quite boring, albeit punctuated by short periods of sudden excitement. Working as an economist at the time, Walter Bagehot sets about explaining how the British government and the Bank of England interact. The Bank of England in London, was one of the most powerful institutions in the world. Lombard Street is Walter Bagehot's famous explanation of the England central banking system established during the 19th century.Īt the time of writing, the United Kingdom was at the peak of its influence.
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