This week in history: Bank of England nationalised

The Labour government that came to power in 1945 took the decision to nationalise the Bank of England. The Bank would have to wait until 1998 before it could once again set monetary policy.

14-2-13-Montagu-Norman

Montagu Norman, Bank of England governor, 1920 to 1944

Up until the late 17th century, the English government had always borrowed money from private bankers. However, in the aftermath of the turmoil of 1688-1689, when England was defeated by France at sea, the new government needed rapidly to increase military (especially naval) spending.

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