Tuesday, September 29, 2009
Why QE isn’t working – onein the eye for inflationistas
By Willem Buiter of the LSE. SHows that QE doesn't work and the Bank of England know it. They're deliberately doing it in an ineffective way, it's only real purpose in my opinion is to bring down the value of Sterling. "Quantitative easing (QE - the purchase of government securities by the central bank, financed through increases in base money) in the UK is not working. I should have written â€œnot yetâ€, for posterior coverage reasons, but Iâ€™m running out of patience with a policy that (a) has been ineffective for the half year of its existence and (b) can be easily modified to make it more effective."