David Miles, external member of the Bank of England
Monetary Policy Committee had an article in the FT on 18th June
arguing that QE has brought benefits in that it has maintained asset prices but
not caused asset price bubbles.
Er . . yes: but that ignores the elephant in the
room, namely why stuff the pockets of asset owners, i.e. the rich as a way of
escaping a recession?
I.e. if the central bank is going to print money,
why not just spend it bog standard items? As regards the public sector, that
would be health, education, roads, etc. And as regards the private sector, the “printed
money” can be channelled into household pockets – or to be more exact, the
authorities don’t even need to do any “channelling”. They can just cut taxes.
Put another way, Positive Money’s “QE for jobs”
campaign makes more sense than traditional QE.
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