Originally posted by TimberWolf
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
House Prices stable - yeah right
Collapse
X
-
"A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon -
Originally posted by Freamon View Post...which will go straight into bank reserves and no further (as the previous £200bn has done).Comment
-
Originally posted by TimberWolf View PostFew people support that view. AFAIK most economic experts consider QE equivalent to printing money.
In March 2009, the Monetary Policy Committee announced that, in addition to setting Bank Rate at 0.5%, it would start to inject money directly into the economy in order to meet the inflation target [comment: i.e. increase it]. The instrument of monetary policy shifted towards the quantity of money provided rather than its price (Bank Rate). But the objective of policy is unchanged - to meet the inflation target of 2 per cent on the CPI measure of consumer prices. Influencing the quantity of money directly is essentially a different means of reaching the same end.
Significant reductions in Bank Rate have provided a large stimulus to the economy but as Bank Rate approaches zero, further reductions are likely to be less effective in terms of the impact on market interest rates, demand and inflation. And interest rates cannot be less than zero. The MPC therefore needs to provide further stimulus to support demand in the wider economy. If spending on goods and services is too low, inflation will fall below its target [comment: can't have that can we!].
The MPC boosts the supply of money by purchasing assets like Government and corporate bonds – a policy often known as 'Quantitative Easing'. Instead of lowering Bank Rate to increase the amount of money in the economy, the Bank supplies extra money directly. This does not involve printing more banknotes. Instead the Bank pays for these assets by creating money electronically and crediting the accounts of the companies it bought the assets from. This extra money supports more spending in the economy to bring future inflation back to the target.
Bank of England | Monetary Policy | Quantitative Easing ExplainedComment
-
Originally posted by Freamon View Post...which will go straight into bank reserves and no further (as the previous £200bn has done).
If it's Govt that sells bonds then this money go into Govt spending and keep interest rate on bonds low by making up for lack of demand from real investors.
If it's banks of all sorts that sell tulip "AAA" assets in exchange for real cash then this money will end up on commodities markets to make said banks big $$$ that they will repay as bonuses to employees where as everyone else will keep paying the price in higher inflation.Comment
-
Originally posted by TimberWolf View PostFew people support that view. AFAIK most economic experts consider QE equivalent to printing money."A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester FreamonComment
-
Originally posted by AtW View PostDepends who sells paper tulip for real cash to cretins at BoE.
If it's Govt that sells bonds then this money go into Govt spending and keep interest rate on bonds low by making up for lack of demand from real investors.
If it's banks of all sorts that sell tulip "AAA" assets in exchange for real cash then this money will end up on commodities markets to make said banks big $$$ that they will repay as bonuses to employees where as everyone else will keep paying the price in higher inflation."A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester FreamonComment
-
Originally posted by DimPrawn View PostEarly 90's interest rates 15%
Base rates were at 12% for a few hours. The highest they were for any substantial period of time was 10%.Comment
-
Originally posted by centurian View PostNope - they were never at 15% - it was pre-announced that they were going to be raised to 15%, but that never happened. Instead we pullled out of the ERM.
Base rates were at 12% for a few hours. The highest they were for any substantial period of time was 10%....my quagmire of greed....my cesspit of laziness and unfairness....all I am doing is sticking two fingers up at nurses, doctors and other hard working employed professionals...
Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment