Monthly Archive: August 2012

Aug 25

The Bank of England’s report on the distributional effects of asset purchases: an independent assessment

The Bank of England’s report to the Treasury on August 23rd, The Distributional Effects of Asset Purchases, looks flimsy at best. Gone are the bold claims made for Quantitative Easing when it was first launched back in 2009. QE will boost bank lending to business…… That doesn’t seem to have happened. ….and stimulate business investment. …

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Aug 20

Schumpeter, Creative Destruction and the Regeneration of the Banking System

As a young man, Joseph Schumpeter said he had three ambitions in life – to become the finest horseman in Vienna, the greatest lover in Austria, and the most brilliant economist in the world.  In later years, he confessed to being disappointed that he had only realised two of his three goals. He did not …

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Permanent link to this article: http://www.goldenguinea.com/schumpeter-creative-destruction-and-the-regeneration-of-the-banking-system/

Aug 13

Why Quantitative Easing Hasn’t Worked

Another week, another downgrade in the Bank of England’s forecasts for the British economy. Last year, the Bank forecast that the UK economy would grow by 2% in 2012. This was subsequently revised downwards to 0.8%.  Last week, the Governor of the Bank of England, Sir Mervyn King, announced that the Bank’s forecast was now …

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Permanent link to this article: http://www.goldenguinea.com/why-quantitative-easing-hasnt-worked/

Aug 06

“Saving the Euro” – the Spanish Ponzi Scheme

Warren Buffett once sought to humanise international finance in the form of a person he called “Mr Market”. Mr Market, he discovered, has a manic personality, and is prone to swing erratically and unpredictably from roaring euphoria to almost suicidal depression. Mr Market’s reaction to breaking news tends to be out of all proportion to its likely …

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Permanent link to this article: http://www.goldenguinea.com/saving-the-euro-part-two-the-spanish-ponzi-scheme/