More QE !!!!!

Reaper

To my mind QE has not been very effective because the money only gets as far as the banks who are short of cash and are always being told to hold more reserves, so they say "thanks very much" and hoard it rather than lend it out like they are meant to.

In my opinion it would stimulate the economy far better if they printed shopping vouchers for use on the high street and handed them out to everybody in the country. Much more likely to stimulate spending.

They won't of course because a side effect of QE is low interest rates on govenment borrowing, though they would never admit that's a reason for doing it.

IronWolf

Reaper wrote: »

To my mind QE has not been very effective because the money only gets as far as the banks who are short of cash and are always being told to hold more reserves, so they say "thanks very much" and hoard it rather than lend it out like they are meant to.

In my opinion it would stimulate the economy far better if they printed shopping vouchers for use on the high street and handed them out to everybody in the country. Much more likely to stimulate spending.

They won't of course because a side effect of QE is low interest rates on govenment borrowing, though they would never admit that's a reason for doing it.

That would just lead to massive inflation, all the shops on the high street would just jack up their prices.

The whole point of QE is to lower interest rates on government bonds and increase the money supply as a consequence, the BoE is quite open about this.

Ark_Welder

Reaper wrote: »

In my opinion it would stimulate the economy far better if they printed shopping vouchers for use on the high street and handed them out to everybody in the country.

This was tried in Japan, but it didn't work.