Daily Mail
"The Government may resort to printing extra money if interest rates keep falling. It is being considered as a desperate measure if base rates fall so far that they cease to work as an economic lever."
"Chancellor Alistair Darling and Bank of England governor Mervyn King are considering whether to embark on a new policy of expanding the money supply, or quantitative easing, sources today told the Evening Standard."
"Vince Cable, the Liberal Democrat shadow chancellor, said: 'It would be a very dangerous course of action and if it went wrong there could be high inflation afterwards. "
"But Investec chief economist Philip Shaw said: 'We are sceptical that quantitative easing in the strict sense... will give the real economy a significant push, especially as this did not appear to have a material effect in Japan earlier this decade.'
(See previous blog entries on Brown printing money)
No comments:
Post a Comment