United Kingdom

The United Kingdom has historically played a leading role in developing parliamentary democracy and in advancing literature and science. At its zenith in the 19th century, the British Empire stretched over one-fourth of the earth's surface. The first half of the 20th century saw the UK's strength seriously depleted in two World Wars and the Irish republic withdraw from the union. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous European nation. As one of five permanent members of the UN Security Council, a founding member of NATO, and of the Commonwealth, the UK pursues a global approach to foreign policy. The UK is also an active member of the EU, although it chose to remain outside the Economic and Monetary Union. Devolution and constitutional reform have been significant recent issues in the UK. The Scottish Parliament, the National Assembly for Wales, and the Northern Ireland Assembly were established in 1999, but the latter was suspended until May 2007 due to wrangling over the peace process.

Economical characteristics

 * Currency: Pound sterling (ISO code: GBP)
 * Central bank discount rate: 0.86% (31 December 2008)
 * Commercial banks lending rate: 4.63% (31 December 2008)
 * Stock of money (M1): $NA
 * Quasi money (with M1 makes M2): $NA

Notable events:

 * Banking crisis: 1810, 1815-1817, 1825-1826, 1837-1839, 1847-1848, August 1857, May 1866, October 1878, November 1890, 1974-1976, 1984, 1991, 1995; in Scotland: 1857-1858, 1878-1880, 1908 ; 2007
 * Years in inflation: 2.4% (share of years 1800-2009 with annual inflation above 20 per cent per annum)
 * Public default: 1822, 1834, 1888-1889, 1932 (domestic)

Points of interest
For economists, Henry VIII of England should be almost as famous for clipping his kingdom's coins as he was for chopping off the heads of its queens. Despite inheriting a vast fortune from his father, Henry VII, and even after confiscating the church's assets, he found himself in such desperate need of funds that he resorted to an epic debasement of the currency. This debasement began in 1542 and continued through the end of Henry's reign in 1547 and on into that of his successor, Edward VI. Cumulatively, the pound lost 83 percent of its silver content during this period.