asterisk2a + review + qe   1

How the world paid the hidden cost of America's quantitative easing | Business | The Guardian
local policy is leaking in a global economy. not deniable.

investor cash looking for a high return.The chase for yield – the need to hold assets with a low value relative to the return – is nothing new. However, the billions of pounds spent by central banks on their own government's bonds released a tidal wave of cash that needed to find a home. Booming commodity markets were an unwanted side-effect of boosting investor confidence in stock and bond markets, which had threatened to spiral downwards when the recession hit.

Adam Posen, an external member of the Bank of England's monetary policy committee, repeated his warning earlier in the week that Britain needed another dose of QE to keep asset prices from sliding and stop confidence in the economy ebbing away. In the face of government austerity cuts, which will strip more than £12bn out of the economy this year in rising VAT bills alone, he said an extra £50bn in QE was the bare minimum needed.
QE  QE-2.0  quantitative  easing  2011  commodities  benbernanke  Fed  UK  BoE  judgement  outlook  review  monetary  policy 
july 2011 by asterisk2a

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