Additional, or a parallel money market, the London foreign exchange...

Additional, or parallel money market

The additional market is not guaranteed. It includes: the interbank market, sterling deposit certificates, dollar deposit certificates, securities of local authorities, financial companies and corporate securities. In 1986, the Bank of England extended short-term commercial Euro-marks and short-term commercial promissory notes to the London supplementary market. The bank sets one condition for their issuance: shares of issuers must be registered on the stock exchange. Thanks to the recent more liberal conditions, the growth of the additional market proved to be very significant. In the 1990s. in the additional market, the growth of treasury bills, acceptance bills (written in pounds sterling) and sterling deposit certificates was much higher than this indicator of securities of depository authorities and foreign deposit certificates.

London Foreign Exchange Market

This market has more than 700 British and foreign banks, as well as other financial institutions. Some of them buy and sell foreign currency at their own expense. In the case of major transactions, agents for the purchase and sale of foreign currency can act as intermediaries. All brokers in this market are members of the Association of Brokers for Foreign Exchange and Currency Deposits. The Bank of England exercises strict control over agreements on the conclusion of important transactions, and independently conducts business on behalf of its clients (government departments and central banks of other countries). Operations in the London foreign exchange market are similar to operations in other markets, including spot markets, term transactions, futures, options, arbitrage transactions and currency swaps.

Changes in the general financial policy of Great Britain

The policy of the British government changes not only because of the country's accession to the EU, although traditionally the government in the field of financial policy distances itself from the general policy of the EU (in particular, in the issue of the euro). Changing each other, the governments of the Conservatives and Labor significantly change the very foundations of the country's economic policy. In this connection, statements of the leader of the parliamentary faction of Tory Peter Liley, formerly one of the most consistent supporters of the policy of the government of Margaret Thatcher, are of some interest. In particular, he stated that "Thatcherism should no longer be the guiding philosophy of the party." Conservatives must be in favor of the welfare state. Conversations about the "free market" should go to loss. We must abandon the utopian dream of privatized health care and education. " It is no coincidence that this speech "was universally regarded as the death throat of one of the once dominant orthodox scholars". Recall that the economic base of the welfare state is Keynesianism. However, England did not enter the euro area and in every possible way withdrew from the common responsibility for the fate of the EU, even during the debt crisis in a number of eurozone countries.

It seemed that in the 2008-2010 crisis, the global situation in the world has changed, and the leaders of the G-7, including Great Britain, agreed with the need for a complete revision of the previous ideological base of economic policy. However, as soon as in 2010 and in the first half of 2011 the conclusion was reached about the "resumption of growth", the British government as a whole began to pursue the old policy, including banking operations. But it is unlikely that this direction is promising - the very current situation in the EU requires a different policy from Britain. Judging by the activation of the government in the context of the euro crisis in 2012, it appears to be largely aware of this need.

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