See here. Niall
Ferguson is amongst them, as might be expected.
One could
add almost every Austrian on the face of planet Earth, Detlev Schlichter
in particular.
Of course
the absence of serious inflation over the last three years or so doesn’t prove
that serious inflation sometime in the next five years is a total
impossibility. The incompetents who have spent more time getting us out of the
recession than we spent fighting WWII are obviously well qualified to make
further mistakes.
But the
basic point is that QE simply swaps monetary base for government debt, and
those two are not much different in nature. Thus it’s nonsense to claim that
the swap will result in in a drastic increase in demand and hence inflation.
Item 1 is a fascinating read.
ReplyDeleteNo-one knows where QE money went or what its effects were !!
However, the writer of item 1 may not be justified in his worries that foreigners got much of the "benefit".
The data indicates that overseas holdings of UK gilts roughly doubled 2009-13, thus remaining a fairly steady 30% of the total.
http://www.dmo.gov.uk/documentview.aspx?docname=publications/quarterly/jul-sep13.pdf&page=Quarterly_Review