Walter Bagehot is an English economist, publicist and banker who lived from 1826 to 1877, and was born in Langport, County Somerset. He was one of the most famous and influential economists of the 19th century. His writings and publications influenced the formation of the British banking system, and his work has become a reference for modern researchers.
Who exactly was Walter Bagehot?
Walter Bagehot was born into the family of a small businessman who managed a fabric store. Walter’s father was involved in religious activities, and his mother was a member of the Unitarian Church. Walter Bagehot attended school in Langport and then studied at the University of London. After graduation, he obtained a job at the Lombard Street Bank, where he worked throughout his life. In 1858, Walter Bagehot published his first work, entitled “The English Constitution.” This work was well received and was reprinted many times.
What did Walter Bagehot accomplish?
Walter Bagehot was known for his many publications, including his influential work “The Money Market,” which he published in 1873. This work was particularly influential in shaping the British banking system. In his work, Bagehot laid the foundations of banking theory and demonstrated the impact of banking on the economy. In this work, he also defined the principles by which banks can operate. His banking concepts are still used today in banking and have become a reference for modern researchers.
The development of banking, and Walter Bagehot
The works of Walter Bagehot include many innovative ideas about the banking system that contributed to the development of banking in Britain. Some of these include: the introduction of regulations on the safety and security of deposits, the recommendation for banks to maintain relatively high levels of liquidity and the recommendation for banks to maintain adequate levels of capital.
Bagehot also developed the concept of central banking, in which the central bank is the main regulator of the monetary market. He also believed that the central bank should be in charge of managing the money supply to promote economic growth and stability.
