John Redwood
"Apparently the Bank and government do not have enough economists of their own – being down to their last thousand or so. Today to make up for the shortage they are inviting in more for a meeting to give them a hand with QE.
....Summary:
QE has been great for a government wishing to hog all the available cash in a pre election year without driving up its own borrowing rate too much. When we stop QE we will find out the true cost of government borrowing. It has done nothing to ease credit for the cash starved private sector. Banks offer very different deposit and loan rates for the private sector, divorced from the artificial money and government bond market rates. QE has helped push up share and bond prices which helps confidence in assets amongst investors.
QE is helping drive down the pound, which might in due course assist in correcting the balance of payments deficit. The absence of action to tackle the government deficit, coupled with the amount of money being created is bad for overall confidence and bad for the value of the currency."
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