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Timm

I Can't Believe It's Another Qe Thread

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Specific question:

Is QE money debt backed? Does it require the issue of new Government securities?

Oh, that's two questions. Here's a third: does anyone have any evidence?

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No. No. No, but it should be on the BoE website somewhere.

Yep.

http://www.bankofengland.co.uk/monetarypol...qe/facility.htm

In January 2009, the Chancellor of the Exchequer authorised the Bank to set up an Asset Purchase Facility (APF) to buy high-quality assets financed by the issuance of Treasury Bills. The aim of the Facility was to improve liquidity in credit markets. The Chancellor also announced that the APF provided an additional tool that the Monetary Policy Committee (MPC) could use for monetary policy purposes. When the APF is used for monetary policy purposes, purchases of assets are financed by the Bank creating money, rather than by issuance of Treasury Bills. Following an exchange of letters published on 5 March, the Chancellor authorised the MPC to use the APF for monetary policy purposes.

Case closed, sorry to bother you all.

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