Quantitative easing explained: “Who would be a central banker at the moment?”


Quantitative Easing explainedFrom the FT, Quantitative Easing Explained provides an approachable description of the process.

However, Dr Anthony Evans writes:

Despite the confusing terminology, quantitative easing is nothing new. It is simply an exotic label for a discredited policy.

And:

The amount of currency in circulation was growing at 12% in January 2009, has consistently been expanding at a faster rate than GDP, and the Bank of England is responsible for this monetary expansion. What’s more, the consensus view of economic commentators is that a root cause of the financial crisis was artificially low interest rates and the resulting mis-allocations of capital. In short, the Bank’s solution is a larger dose of what caused the original disease.

Read his article for more.

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