The Bank of England has taken on the characteristics of an economic chameleon: on the one hand trapped in orthodoxy and, on the other, struggling to break free of its worst constraints. Nevertheless, the bank has pushed important straws out into the swift flowing stream of reality. Now, for its own reasons the bank has opened its mind to the British public on how exactly banks work. The bank’s Quarterly Bulletin 2014 Q1 confronts, head on, what is taught about bank operation to…
