Economics Trip to the Bank of England
Thursday 21st March 2013
After studying the theory behind fiscal and monetary policy our economic class got the opportunity to further our understanding by visiting the Bank of England. Twelve of us, along with Miss O Doherty set out on March 14 to explore the world of the MPC and to understand the importance of setting the right policy to achieve economic stability.
Knowing our keen thirst for financial knowledge, Katie Chorley’s Father kindly invited us to visit the London Stock Exchange, an opportunity we could not refuse!
Numis is an investment banking and institutional stock broking firm with impressive offices right in the centre of St Paul’s. We were all brought into their conference room and given an overview of the company. We then met with a Research Analyst who explained the role he played in the company; he researches companies such as ASOS and recommends his customers to invest or not. He has to look at a number of factors such as finance, marketing and future sales to make his judgment. After that a Corporate Broker came to talk to us, he tries to build up relationships with his customers so that they will use Numis when they need to raise capital. He also explained the importance of the “ Chinese Wall” where confidential information is kept. After that we were let loose on the trading floor where different traders eagerly tried to explain the hundreds of graphs and figures displayed on their six screens! One of the most impressive features was being able to speak and wave to the New York Office on the large plasma screens. We all thoroughly enjoyed the experience of seeing where a degree in Economics could lead us and it gave us greater information about jobs in finance.
All of that investment was hungry work so it was a quick trip to Nandos before we were due to explore the Bank of England.
On arrival on the Bank we were given an activity which asked us to look around the museum for different answers, it was a good way to make sure we had seen all sections. The most impressive feature of the museum was trying to lift a gold bar which would cost £423,000! After our look around the museum in which we struggled to open some of the vaults to safes we were ready for our talk. The presentation was especially catered for A Level Economics so we were able to understand the terminology and the concepts after studying it before we came. We learn about the effects interest rates can have on different sectors of the economy and what a difficult job Mervyn King has. After an informative questions and answer session we were free to go back and look around the museum. Some of us managed to win prizes for answering correct questions on Monetary policy, like the highest rate of inflation in 1973 peaked at 27%!
By five o clock we were all exhausted and ready to make the journey back to Queen Anne’s. We learnt a lot about the world of finance and Monetary Policy which hopefully will benefit us in our forthcoming examinations!