Browsing All posts tagged under »Quantitative easing«

In Support the Bank of England on Monetary Policy

March 28, 2011

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While reading the Office for Budget Responsibility‘s United Kingdom Economic and Fiscal Outlook – March 2011 over the weekend (yes, I had that much fun), I noticed the chart below: It shows the difference between the current rate of UK inflation (CPI) and an estimate of inflation had sales taxes (VAT and excise duty on […]

Equity Bulls Don’t Need Quantitative Easing to be Proved Correct

October 28, 2010

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At present, there is much speculation surrounding whether or not the Federal Reserve will engage in another round of quantitative easing and if so, in what size.  Recently, stock prices have declinedon worries that quantitative easing will not occur in the size initially assumed, as this article from CBS explains: World stock markets fell Wednesday […]

The Emerging Split on the Bank of England’s MPC

September 29, 2010

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The Bank of England’s Monetary Policy Committee (“MPC”) has maintained interest rates at current 0.5% level since March 2009 and its Asset Purchase Programme (a.k.a. quantitative easing) at £200bn since November 2009, the consensus amongst the committee members is now beginning to break down, creating uncertainty regarding the future direction of monetary policy.  One member […]

The Partial Success and Unintended Consequences of Quantitative Easing

September 21, 2010

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When the Bank of England formally launched its quantitative easing program in March 2009, the minutes from the meeting stated that this policy mechanism would work by: stimulating the demand for corporate credit instruments [and] improve the supply of funds to the corporate sector. The purchases would also mean that the banking system would be […]