Credit where it’s due: Making QE work for the real economy

Credit where it’s due: Making QE work for the real economy
Document type
Report
Author(s)
Wilkes, Giles
Publisher
CentreForum
Date of publication
26 February 2010
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

This item is only available to registered users

Register now or Log in

Your use of this content is subject to the terms and conditions of this portal

Quantitative easing (QE) is the Bank of England’s attempt to boost the economy once interest rates hit zero. £200bn of new Bank reserves has been created to increase the money circulating in the economy and to boost spending. The Bank’s balance sheet has grown from a little larger than that of a provincial building society to several hundred billion pounds. Today, the most important investor in the country is a public servant in Threadneedle Street. In ‘A balancing act: fair solutions to a modern debt crisis', CentreForum argued that it was right to use fiscal policy to support the economy as it toppled into recession.1 If the government had embarked on an austerity programme at the same time as the private sector, an already steep downturn would have turned into a spiralling depression. However, now that the economy seems to have passed its nadir, the sheer size of Britain’s deficit may have left fiscal policy exhausted. The party conferences in the autumn before the election were dominated by arguments about how to cut public spending and reduce borrowing. Only the vital question of timing still divides the parties; CentreForum has argued that a slower pace of government consolidation would be optimal.3 But it is generally agreed that monetary policy is the sole remaining tool for providing a sustained stimulus to the economy. Unfortunately, the conditions that allowed monetary policy to perform this function have changed.

Related to Trends: economic, social and technology trends affecting business

Follow the money: exploring the link between UK growth and workers' pay packets

Downloadable briefing note looking at the relationship between productivity and pay growth

From precarity to empowerment: women and the future of work

Downloadable paper on ensuring a fair future of work for women

Economic insecurity: the case for a 21st century safety net

Downloadable paper on how economic insecurity is experienced by workers

Agents of change: making innovation agencies as innovative as those they support

Downloadable paper on how government innovation agencies can become better

More items related to this subject

Related to CentreForum

The performance of the NHS in England in transforming children's mental health services.

This report analyses data from NHS England’s new Mental Health Five Year Forward View Dashboard. The Dashboard, the second quarter of which was published in February 2017, is intended to act as a barometer

The implications of the National Funding Formula for schools.

This report states that the existing school funding system allocates money inconsistently across English schools, and that there is a strong case for introducing a new national funding formula despite

The introduction of Progress 8.

This report explains the workings of Progress 8, designed to measure how well pupils progress between the end of primary and the end of secondary school. The score for each pupil is based on whether

Annual London education report.

This report, the first yearly review of education in the city under Sadiq Khan, presents data relating to attainments in primary and secondary schools, initiatives to improve the prospects of disadvantaged

More items related to this publisher