What on Earth does quantitative easing mean?

CFC

It's what devaluation of the pound is called now they don't control the exchange rates and have no gold. Money is printed but only given to chosen institutions. Wish they'd give it to me, I'd start the consumer upswing singlehandedly

Bloomberg

MSE_Guy wrote: »

This thread is to discuss my MSE blog:

What on Earth does quantitative easing mean? How financial jargon alienates the masses

Just click reply to post.

Quantitative easing is basically putting more money into circulation in order to get the economy going. It is a big falsehood which will one day come back to haunt us in the form of rampant inflation. In the short term it may appear to stimulate growth but it is an illusion.

The economy is in tatters due to years of overspending by both the government and private individuals. No matter how you dress it up we have not faced up to the problem. Putting money into circulation which should not really be there and having interest rates at 0.5% is merely papering over the cracks. We are by no means over the worst.

MoneySaverLog

Bloomberg wrote: »

Quantitative easing is basically putting more money into circulation in order to get the economy going. It is a big falsehood which will one day come back to haunt us in the form of rampant inflation. In the short term it may appear to stimulate growth but it is an illusion.

The economy is in tatters due to years of overspending by both the government and private individuals. No matter how you dress it up we have not faced up to the problem. Putting money into circulation which should not really be there and having interest rates at 0.5% is merely papering over the cracks. We are by no means over the worst.

But it's not going to go into circulation, the banks are going to horde this cash, they are in massive debt and so someone comes along and gives you money, you say thank you very much I'll pay off my debts now.

CFC

MoneySaverLog wrote: »

But it's not going to go into circulation, the banks are going to horde this cash, they are in massive debt and so someone comes along and gives you money, you say thank you very much I'll pay off my debts now.

Correct. It ought to come to consumers if they want to kick start growth.