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Re: BOE has a little problem
Any time I see a reaction like this, I have to think the person floating the idea is on to something...Originally posted by Mega View Post
Cameron Debt Fix Called ‘Bizarre’ by Ex-BOE Officials
Oct. 9 (Bloomberg) -- Conservative leader David Cameron’s suggestion that the Bank of England end its asset purchases soon was criticized by two former central bank officials, a setback to the opposition’s effort to build credibility on the economy.
David Blanchflower, who left the bank’s Monetary Policy Committee in May, said Cameron’s speech yesterday was “bizarre” and if put into practice may tip the U.K. into a “depression.” Shamik Dhar, a former Bank of England economist, said “at best this is wrong and at worst downright dangerous.”
Without mentioning the central bank, Cameron told his party’s conference in Manchester that he opposed creating money, saying “sometime soon that will have to stop, because in the end, printing money leads to inflation.”
Prime Minister Gordon Brown’s government has authorized the Bank of England to purchase 175 billion pounds ($278 billion) in securities to help pull the economy out of its deepest slump since World War II. While the program will be wound down as the economy recovers, most economists say it has been necessary...
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Re: BOE has a little problem
cameron is expressing a right and proper conservative position, but does he truly not understand that inflation is the only "solution" to the size of the debt that does not involve a terrible, deflation-spiral depression?Originally posted by GRG55 View PostAny time I see a reaction like this, I have to think the person floating the idea is on to something...Cameron Debt Fix Called ‘Bizarre’ by Ex-BOE Officials
Oct. 9 (Bloomberg) -- Conservative leader David Cameron’s suggestion that the Bank of England end its asset purchases soon was criticized by two former central bank officials, a setback to the opposition’s effort to build credibility on the economy.
David Blanchflower, who left the bank’s Monetary Policy Committee in May, said Cameron’s speech yesterday was “bizarre” and if put into practice may tip the U.K. into a “depression.” Shamik Dhar, a former Bank of England economist, said “at best this is wrong and at worst downright dangerous.”
Without mentioning the central bank, Cameron told his party’s conference in Manchester that he opposed creating money, saying “sometime soon that will have to stop, because in the end, printing money leads to inflation.”
Prime Minister Gordon Brown’s government has authorized the Bank of England to purchase 175 billion pounds ($278 billion) in securities to help pull the economy out of its deepest slump since World War II. While the program will be wound down as the economy recovers, most economists say it has been necessary...
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