Floating debt reduction restored Bank of England monetary sovereignty over creditors

Evidence

22 As we shall see in chapter 6, funding the fl oating debt acquired a further important political purpose in Britain: to eliminate the exceptional postwar situation whereby, due to the excessive circulation of government bonds, the Bank of England’s monetary sovereignty was being challenged. Indeed, creditors could evade the credit restrictions of the Bank by not renew- ing their Treasury bonds at maturity. — Clara E. Mattei, The Capital Order, 1683

Categorization

• QUESTION: Ends mid-sentence—the mechanism by which creditors evaded credit restrictions via non-renewal is cut off; worth chasing the full logic in chapter 6.