The Effects of War and Depression, 1914–38
The four years of war from 1914 to 1918 provided a further important phase of development for the discount houses, because of the very marked and lasting effect that the circumstances of war had on their business and therefore on the functions they performed. International trade and finance, which had come to dominate the life of the market by 1913, were so disrupted and reduced in volume during the period of hostilities that they ceased to provide a sufficient livelihood for bill dealers and brokers. Through pure necessity the houses substituted on an increasing scale in their portfolios the public sector debt that was an indispensable product of war finance.
KeywordsBill Rate Treasury Bill Bank Rate Treasury Bill Rate Open Market Operation
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