Tag: Bank of England

Solving the Mystery of the Brexit Bounce

In the run-up to the EU referendum on June 23rd, you could hardly move without hearing prophecies of doom from the Great and Good of the terrible consequences should Britain vote to leave. IMF Chief Christine Lagarde predicted the impact on the UK economy would range from “bad to very, very bad”. George Osborne, then …

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QE and the Downgrade of Britain’s Sovereign Debt

The news that Britain’s sovereign debt has been downgraded comes as no surprise to those of us who have followed the Bank of England’s monetary policies over recent years with growing bewilderment. The job of a Central Bank is to maintain monetary stability. It is not to print money. It is not to manipulate the …

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An “Expensive Experiment” – An End to QE in the UK?

Congratulations to the Treasury Accounts Committee, which in a trenchant critique has condemned quantitative easing as an “expensive experiment” which has failed to deliver any of its alleged benefits or to stimulate economic growth. It has resulted instead only in inflation and lower returns on savings. It has significantly cut the real incomes of savers, …

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How long will Mr Market’s Euphoria Last?

Mr Market has started 2013 in euphoric mood. The FTSE 100 has soared above 6100 for the first time in almost five years. The Dow Jones Industrial Average is also close to a five-year high at 13,500. And elsewhere across the world stock markets are rising. So is Mr Market’s optimism justified? Only if you …

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QE Revisited – Where Has All the Money Gone?

Many thanks to those who attended my presentation at the City Book Fair in London yesterday, and particularly to the questionner who subjected my critique of Quantitative Easing to vigorous challenge. I welcome this, as it is vitally important that policy is based on a sound factual foundation. To summarise the exchange: My case against Quantitative Easing, set out in detail …

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Sir Mervyn turns Austrian

The aim of commentary on this site is to provide a longer term, more balanced perspective on economic developments than is sometimes offered by the 24/7 rolling news cycle, where today’s lurid headlines of impending disaster often metamorphose into tomorrow’s fish and chip paper.  But while headline news often proves to be of no lasting consequence, sometimes a piece of news barely …

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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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