In an article in the Guardian, Will Hutton examines the use of QE and the failure of the Bank and Treasury to use it to stimulate investment. Increasing investment is both an expansion of demand, it creates income for its suppliers, and capacity for the economy. The Government and the Bank’s ideology will not permit them to use QE to buy corporate debt and so is doomed to fail to meet the needs of business investment and productivity improvement.

QE creates asset inflation, including house prices; it does not increase demand.

Does QE work?
Tagged on:         

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: