The Analysis of Structural Changes in the Reserves of the Bank of England

Bank of England, one the leading examples modern banking, has been established at end 17th century. Economic and social turmoils wars that broke up in first half 19th century have led to a serious debate between Currency School Banking regarding primary function BoE. The Charter Act dated 1844 enacted eliminate ongoing instabilities British economy. act was suspended 1847, 1857, 1866 because developments. In this study, effects economic non-economic developments on Bank’s reserves are investigated using structural breakpoint tests for period 1866. To detect presence any regime shifts both series mean variance, Bai Perron ICSS algorithm procedures were employed. findings study reveal domestic foreign military, political directly affecting UK, Bank.
 Key Words: 1844, Structural breaks.
 JEL Classification: N23, E58, E52