Wednesday, Aug 05, 2009
"The highly perverse world of quantitative easing "
The Telegraph: Coming soon to the UK: negative interest rates?
Did you know that for the first time in history, there is more money parked at the Bank of England in high street bank’s reserve accounts than there is flowing around the country in the form of notes and cash? A lot more, come to mention it.
Posted by devo @ 11:03 PM (710 views) Add Comment
4 Comments
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1. devo said...
http://blogs.telegraph.co.uk/finance/files/2009/08/reservie.jpg
2. jonb said...
Slight problem with that idea. They would withdraw their Bank of England deposits as cash, and stick the money in their vaults.
3. growler said...
Interesting chart. It nicely shows the consumer credit-fuelled spread between the two and the blip in Q2 of 2006 - before all the turmoil of 2007 onwards.
Obviously, the banks are seriously mauled and scared to lend for a reason.... a very good reason. They don't trust each others published records.
4. devo said...
Can someone explain the huge and sudden increase in reserves (from £10 billion to £32 billion) in Q2 of 2006 ?
This was pre-credit crunch and QE.