Causes and Effects of Changes in Bank Rate

No issue concerning the Bank Rate could effectively be discussed without constant reference to the complex institutional framework within which it operates. How complex it is can be gauged by the fact that its detailed description in the Report of the Royal Commission on the Working of the Monetary System covers over three hundred closely printed pages. In this paper I will concentrate on the essentials and bring in the background only to the extent to which it is absolutely necessary for presenting the problems in proper perspective.