The Bank of England and the government debt : operations in the gilt-edged market, 1928-1972

"Government securities are an essential piece of equipment for an effective state. They enable governments to borrow to finance expenditures which they cannot mmediately pay for out of taxation or accumulated savings. In the past, such xpenditures were often for the conduct of wars. Britain was able to raise more money than France to fight the Napoleonic Wars because it had better arrangements for government borrowing. Governments which could not borrow have often resorted to creating money, which its citizens are forced to accept as payment, leading to serious inflation; that is why wars are frequently accompanied by inflation. This book is largely the story of how the market for United Kingdom government bonds - known as gilt-edged or gilts - developed in the middle of the twentieth century, of how the monetary authorities tried to compensate for its deficiencies, and of how they overcame the unintended consequences of their actions"--