This thesis makes a comparison between the design, functions and operations of De Nederlandsche Bank and the Bank of England between the Bank charter of 1864 until the charter of 1887. This period...Show moreThis thesis makes a comparison between the design, functions and operations of De Nederlandsche Bank and the Bank of England between the Bank charter of 1864 until the charter of 1887. This period constitutes the transitional period between both De Nederlandsche Bank’s and the Bank of England’s initial constitution of lender of last resort and a de facto monopolist issuer of banknotes, to a reserve bank under the Gold Standard. It researches the discounting function of both central banks and their money market structure and analyzes data on their lending and discount policies. It concludes that changes in the structures of the Dutch and English money markets between 1864 and 1887 pushed the central banks into a different position in the discount function of those markets. My results suggest that the institutional equilibria of private finance can exercise a much more profound influence on central banking operations than previously assumed.Show less
