Wednesday, Dec 30, 2009

A nicely understated headline...

The Telegraph: Printing money is a game with potentially dangerous results

In just a few weeks, at its meeting in February, the Bank of England's monetary policy committee has to decide whether to continue with QE. It must walk a fine line between continuing the policy and potentially setting off a surge in inflation; and halting it too quickly and plunging us all back into a financial panic. What a difficult act to perform in an election year.

Posted by devo @ 10:49 PM (1365 views)
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6 Comments

1. devo said...

tpbeta, who knows about these things, reckons they'll stop QE in February, then revive it later in the year.

I'm in the 'print and be damned' camp.

What do you think?

Wednesday, December 30, 2009 11:24PM Report Comment
 

2. paul said...

The Bank of England would love inflation to be higher right now, to inflate away some debt. The problem is that printing money begats more printing of money because demand for government bonds dries up meaning that the only way for the government and economy is to fund itself is - you guessed it - printing more money. This is the stage we are at now, with bond demand plummeting and the pound extremely weak.

Basically, any economic strategy that involves printing money cannot really be called a strategy at all - it is akin to burning the log cabin in order to keep warm.

Wednesday, December 30, 2009 11:55PM Report Comment
 

3. alan said...

An accountant might say "hope for the best, prepare for the worst". However, the politicians are in control and its election year!

Aside from my sniping at Westminster, my comments...they haven't decided yet! Important factors in the decision will be public responses to dearer petrol (its coming) and a standstill in public sector pay.

Other considerations are "high profile" volume redundancies, bank stability and of course maintaining house prices!

Thursday, December 31, 2009 09:55AM Report Comment
 

4. fallingbuzzard said...

I think they'll do another £100bn over 6 months, March to September, and take the hit on bond yields. This is the politically neutral option. The continuing credit contraction will be more than enough justification.

Thursday, December 31, 2009 11:37AM Report Comment
 

5. devo said...

4. fallingbuzzard said... I think they'll do another £100bn over 6 months, March to September, and take the hit on bond yields.

Perhaps you'll be right this time, fallingbuzzard!

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40. fallingbuzzard said...

QE will stop here. Thats certain. Make of that what you will.
Saturday, October 17, 2009 11:34PM

Thursday, December 31, 2009 11:52AM Report Comment
 

6. fallingbuzzard said...

Yes, my opinion changed about two weeks ago, which you know from another post I made

Thursday, December 31, 2009 12:34PM Report Comment
 

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