Analysts believe the Bank must step up its commitment to QE to bring down gilt yields as part of efforts to revive the wider economy.
So despite the obfuscatory terminology, QE is nothing new.
Many economics textbooks fail to mention QE, suggesting that this is a new and extreme form of monetary policy.
This is because QE should lead to a fall in gilt yields, which in turn will force down the rate at which liabilities can be discounted.
The biggest danger of QE one that no economist would deny is the destructive inflation that it unleashes.
Indeed one of the reasons the Bank is keen to refer to QE rather than its colloquial name 'printing money' is to distance itself from negative connotations.
Definition of QE in US English:
QE
abbreviation
Quantitative easing.
Example sentencesExamples
Indeed one of the reasons the Bank is keen to refer to QE rather than its colloquial name 'printing money' is to distance itself from negative connotations.
The biggest danger of QE one that no economist would deny is the destructive inflation that it unleashes.
This is because QE should lead to a fall in gilt yields, which in turn will force down the rate at which liabilities can be discounted.
So despite the obfuscatory terminology, QE is nothing new.
Many economics textbooks fail to mention QE, suggesting that this is a new and extreme form of monetary policy.
Analysts believe the Bank must step up its commitment to QE to bring down gilt yields as part of efforts to revive the wider economy.