Monday, February 1, 2010
Good job we have a safe pair of hands at the healm
Like the ship in Jason and the Argonauts, the UK economy is drifting towards a pair of clashing rocks. On one side: the threat of deflation, a double-dip and an even deeper, longer recession. On the other: dependence on quantitative easing (QE), a massive, growing public deficit and a risk of inflation. At the shipâ€™s helm, facing an acute policy dilemma, is the Bank of Englandâ€™s monetary policy committee (MPC). It meets this week to decide whether to stop QE, which has injected Â£200 billion into the economy, or extend it further.