The Bank of England has had much success and as a result many nations have followed its lead in creating a central banking systems of their own. The United States is one of these nations. The two nations have many similar banking objective and strategies on how to best achieve the objectives. These nations also differ greatly in some aspects of their banking philosophies. The currencies of both nations are strongly held around the world. Their monetary policies and bank regulations differ in some aspects, but both nations banking systems are held to high esteem worldwide. The banking systems of the United States and the United Kingdom were born of the same origins but differ in some major aspects of practice.
The United States monetary system was greatly influenced by that of the United Kingdom. The United States Federal Reserve Board and the United Kingdoms Monetary Policy Committee are both used to regulate the economy and are similar to one another. The Federal Reserve System is the central bank of the United States and was established by Congress in 1913. The bank of England is the central Bank of the United Kingdom and plays the same role as the Federal Reserve. The main roles of the Federal Reserve is to influence the money and credit conditions to achieve stable prices, supervise and regulate banking institutions, maintain the stability of the financial system, and provide financial services to the US Government, the public, financial institutions, and foreign official institutions (Federal Reserve Board Homepage). Before the Bank of England Act of 1998, the United Kingdom and the United States were similar in that their central banking institutions were in charge of these same four objectives. Now the difference is that the Federal Reserve supervises open market operations, where the United Kingdom the Treasury supervises open market operations. The Bank of England and The Federal Reserve's main objective for monetary policy is price stability, while...
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