The role of the Bank of England in creating central banks during the 1930s : an examination of the Central Bank of the Argentine Republic

Abstract

The purpose of this paper is to reassess the role of the Bank of England in creating central banks during the 1930s. The Bank of England dispatched advisors who were familiar with central banking such as Sir Otto Niemeyer and Frederick Leith-Ross not only to members of the 'formal empire' such as India and the Dominions, but also to members of the 'informal empire', including China, Egypt, and countries in Latin America. The mission of these advisors was to encourage governments to create central banks. With regard to the 'informal empire', this action by the Bank of England has been seen as a manifestation of economic imperialism prompted by the interests of the City. In this paper we will examine the creation of the Central Bank of the Argentine Republic in 1935. While most studies up to now have focused only the intentions of the Bank of England, we will concentrate on the internal interests of the Argentine Republic. This new point of view will provide a fresh interpretation of the movement to create central banks.