Earlier this month, 21 Year 13
Economics students visited the Bank of England Museum in London. The museum
tells the story of the national bank from its foundation in 1694 through to its
central role in today’s economy. Pupils listened intently to a presentation by
an expert on monetary policy, learning about the effects of interest rates and
quantitative easing.
Understanding how and why
monetary policy works in the UK is an essential part of the A Level syllabus.
In light of the recent economic recovery, there has been some speculation
regarding a possible increase in interest rates. Students investigated the
possible reasons why this might happen and the predicted consequences.
During the presentation, the
pupils watched short animated clips which enhanced their understanding. The
presentation then moved on to money fraud, with pupils finding out about all
the steps taken to protect the public from this crime. A particularly interesting part of
the tour was exploring the gold reserves. Students enjoyed lifting a ‘gold bar’
worth £325,000, and learnt that Gordon Brown sold over half of all Uk reserves
in 2001, raising $3.5billion for the UK government. In 2011, when gold prices
peaked, this sale would have earnt the government over $19billion.
Finally, the group analysed the
bank’s decision to move to plastic banknotes from 2016 onwards. This was
announced in autumn 2013 after a three year public consultation and research
programme. The new currency will be made from thin polymer layers, and is said
to be cleaner, more secure and more durable than paper banknotes.
The highlight of the day came in
the afternoon with a guided tour of the Shard viewing platform, 306 metres and
72 floors high. Costing £1.2billiion to build, it is no surprise that apartment
prices cost up to £50million; with a £10,000 fee to just visit one.
Head of Economics Mr Bluck
commented: “Students were interested to find out that around a third of the
Shard still remains empty. The high office costs and apartment prices are
struggling to be sold in the wake of the recession. This is linked to a module which students cover
in Unit 4 of their course. Astonishingly, 85% of the Shard has been funded by Qatar.
Overall, it was a highly informative trip and I look forward to seeing pupils
put their new-found knowledge into practice in the coming weeks.”
More photos from the trip can be viewed in our media gallery (click on the camera icon in the bottom left corner of the menu).