Wednesday, 20 November 2013

Here's the evidence that QE has harmed the UK economy

"Bit late on this, but a report this week by the management consultancy McKinsey has attempted to quantify the distributional consequences of central bank asset purchases (so-called quantitative easing) which I referred to in my column this morning. Pretty terrifying reading it makes too, hammering home the point that QE has been extremely beneficial to indebted governments and other borrowers, but on the whole very damaging to households, particularly elderly ones reliant on fixed income forms of saving. ........QE has resulted in a massive transfer of wealth from households the governments. And they say central banks are meant to be independent."

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