Friday, Jan 22, 2010
Inflation / Deflation debate continues....
The Market Oracle: UK Hits Worst Deflation on Record
The unprecedented actions of the Monetary Policy Committee to inject £200 billion directly into the economy – described by some as 'quantitative easing' – have averted a potentially disastrous monetary squeeze," said governor Mervyn King in a speech on Tuesday. Barely 36 hours later, Thursday's money-supply figures said otherwise. And bluntly.
Posted by rob @ 08:06 AM (833 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. mountain goat said...
Interesting but incomprehensible article as usual from Mr BullionVault.
Pretty impressive to have a spike up in inflation and a spike down in money supply in the same month though!
2. fallingbuzzard said...
Incomprehensible or not, at the heart of this is whether or not the BOE can actually control money supply, or even their preferred measure which excludes the financial intermediaries. I don't think they can control it in the way they believe they might be able to, and even they say "might". And I think they'll be printing a little more although they may already have come to the conclusion that its broadly ineffective in stimulating money supply. They will of course say that we don't know how bad it would have been. I think we'll find out though.
3. Flash_2007 said...
Why is this deflationary? Just because we don't have the money doesn't mean it doesn't exist surely it means that the creditor nations have large sterling reserves and could dump them leading to massive inflation.