Bank of England quantitative easing 'boosted GDP'

[Freamon]

The Bank of England's purchase of £200bn of assets has been "economically significant", boosting GDP by as much as 2%, according to the Bank's Quarterly Bulletin.

The action, known as quantitative easing, could also have raised inflation by 1.5%, the Bank said.

Well I suppose it would have looked bad if they'd just come out and said "we don't have a f**king clue what the effects of QE have been, if any".

[AtW]

Well I suppose it would have looked bad if they'd just come out and said "we don't have a f**king clue what the effects of QE have been, if any".

If they said they have no clue then I reckon it would have been a lot more believeable than what they said instead.

[BlasterBates]

No the guy is right the US, UK, Germany and a few other countries have a few years to get their debt down so they don't issue any new debt. As long as they do this no problemo. In fact Germany is planning to do this anyway, in 2020 they will issue no new debt. As long as they stick to this shouldn't be a problem. This is because demand for bonds won't be satisfied so should keep the bubble in check.

If they keep increasing their debt, then yes there will be a "Greece moment" sometime down the line.

[AtW]

No the guy is right the US, UK, Germany and a few other countries have a few years to get their debt down so they don't issue any new debt.

You mean printing money to give to bond holders instead of rolling debt over whilst paying token 2% interest?