It’s been more than a year now since the Bank of England began printing money, via Quantitative Easing (QE).
Governor Mervyn King told the BBC at the time: “Money in the economy is not growing quickly enough to support economic growth… What we’ve announced today are measures to increase the supply of money injected directly into the wider economy.”
The European Central Bank is now drawing ever closer to doing something similar, as the euro crisis spins out of control. So I want to take a closer look at QE and ask, “What has it actually achieved?”