Today’s strategy could be a lifeline for a government keen to avoid further U-turns. How does it work?
The Bank of England has just released a fascinating defence of the unintended consequences of its massive quantitative easing programme. Economics Editor Faisal Islam takes a look.
It’s not just savers who can no longer live off paltry savings income. The retirement annuity industry has been hit by a fall of 20-30% in the annual income that pensioners will be obliged to live off for the rest of their lives.
Cutting rates again to a new record was discussed but there are fears for the impact on banks, building societies and the normal functioning of money markets. No, all roads lead to more quantitative easing. But not just any old QE.
Our Economics Editor looks into the $50billion valuation of Facebook – and finds that UK-style quantitative easing is behind the company’s rapid growth.
Quantitative Easing: What on earth has happened to the £200bn?
Channel 4 News’s economic correspondent Faisal Islam imagines how quantitative tightening might take place.
It’s a cosmic game of pin the tail on the donkey. The tail is the amount of money creation that the Bank of England deliberates over. The donkey is the British economy. The Bank has just voted to increase its money creation exercise to £200 billion. A £25 billion increase is a little less than…
Forget the voices suggesting interest rates might creep up in the near future. This morning revealed the reality that the Bank of England nearly voted for even more creation of its funny money.