Tuesday, September 28, 2010
Peopleâ€™s faith in the value of paper money has already been shaken to its core
Has Adam Posen, an external member of the Bank of Englandâ€™s Monetary Policy Committee, gone stark raving mad? In a speech on Tuesday to the Hull and Humber Chamber of Commerce, he advocated another bout of quantitative easing, warning in terms that advanced economies are stuck in a classic liquidity trap which requires further fierce, pre-emptive policy action to get us out. Itâ€™s not inflation, but unemployment which is the real challenge for public policy, he insists.