The Bank’s David Miles today dismissed those of us who contend QE2 will not accomplish its desired end.
It will accomplish something alright - lower UK debt prices.
The instant we read of this policy change we wanted to tell David - thank you for the gift.
Most central bankers have difficulty understanding policy impact on anything out past a year. Too bad Buiter is not still at the levers. You do not adopt such aggressive policy in the face of building price pressures, and, the hint of recovery, EU.
Course of least resistance for UK debt prices remains lower; course of lease resistance for the curve - steeper.
Robert Craven
It will accomplish something alright - lower UK debt prices.
The instant we read of this policy change we wanted to tell David - thank you for the gift.
Most central bankers have difficulty understanding policy impact on anything out past a year. Too bad Buiter is not still at the levers. You do not adopt such aggressive policy in the face of building price pressures, and, the hint of recovery, EU.
Course of least resistance for UK debt prices remains lower; course of lease resistance for the curve - steeper.
Robert Craven
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