Hello, I am looking for someone to write an article on The Bank of England and the Big Band Day. It needs to be at least 1500 words. These reforms were aimed at making London the financial hub of the world once again and it was thought that it was imperative to deregulate the banking system of the UK. These reforms were a success and an economic boom was experienced in the UK. This led many into believing that the deregulation of the financial system was the need of the time, and many countries including Japan and China imitated the United Kingdom’s action. However, a series of events in 1987 showed that freeing up the financial institutions from governmental control is not necessarily good. On October 16, 1987, all the markets in London were unexpectedly closed following The Great Economic Storm. This had a trickle-down effect on the financial institutions and most particularly the stock markets all over the world. Major stock markets including Spain, Hong Kong, and Australia dropped points. The biggest fall was seen in the United State’s DOW Jones index and it was thought that this was a result of excessive deregulation of the financial sector and markets of the USA and the UK.
Another financial crisis occurred in September in 1992. It is widely remembered as “Black Wednesday” because it occurred on a Wednesday. The crisis started when the United Kingdom’s government withdrew Pound Sterling from the European Exchange Rate Mechanism. The major reason behind this was their inability to keep Pound Sterling at its lowest possible exchange rate value. The Thatcher government took desperate measures to prevent Pound Sterling from decline, but nothing proved successful. The government tried to buy the currency from the currency market and increased the interest rate, only to see that it raised inflation and the value of Pound Sterling continued to fall. As a last resort, it was decided to withdraw Pound Sterling from ERM, so that the United Kingdom could pursue its own monetary.