tag:blogger.com,1999:blog-2761684730989137546.post7632063739584005088..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Larry Elliott — Bank of England chief economist calls for big post-Brexit stimulusmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2761684730989137546.post-8005830931248646042016-07-17T09:58:01.610-04:002016-07-17T09:58:01.610-04:00So this is why he did nothing at the meeting last ...So this is why he did nothing at the meeting last Thursday?mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-74229919538549097312016-07-16T16:50:19.434-04:002016-07-16T16:50:19.434-04:00Maybe Andy is on board with Corbyn 'People'...<i> Maybe Andy is on board with Corbyn 'People's QE', and is what he is advocating at core.</i><br /><br />Let's hope, Ignacio.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-28353143722560917242016-07-16T16:22:29.272-04:002016-07-16T16:22:29.272-04:00Maybe Andy is on board with Corbyn 'People...Maybe Andy is on board with Corbyn 'People's QE', and is what he is advocating at core.Ignaciohttps://www.blogger.com/profile/16082008115484199316noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-38094051987086562892016-07-16T15:33:46.985-04:002016-07-16T15:33:46.985-04:00While this is prohibited in the US, it is allowed ...<i>While this is prohibited in the US, it is allowed in the UK, I believe.</i> Tom<br /><br />What is? What about GWB's "stimulus checks"?Andrew Andersonhttps://www.blogger.com/profile/14296407661618321637noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-84610212124668540422016-07-16T11:50:48.913-04:002016-07-16T11:50:48.913-04:00QE is basically replacing government securities wi...QE is basically replacing government securities with bank reserve balances, which is an asset swap that in itself only increases the liquidity of the banking system, which is not an issue in the first place with a lender of last resort function. Along with lowering the interest rate, QE may result in a flattening of the yield curve. Meanwhile, flow of interest income to nongovernment falls.<br /><br />The assumption is that this will stimulate private borrowing for investment and consumption. So far, that hasn't worked so well. Why would it work any better now?<br /><br />As we know, it's about the fiscal flows rather than monetary policy jiggling with interest rates. The CB can't do anything about this short of real helicopter money, which is a fiscal add. While this is prohibited in the US, it is allowed in the UK, I believe. <br /><br />Maybe this is what Andy is recommending. It's not clear from the article that this is his intention. So we'll have to wait and see.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-2445347409740209802016-07-16T11:35:06.710-04:002016-07-16T11:35:06.710-04:00Might mean some QE for UK alternatively Tom...Might mean some QE for UK alternatively Tom...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com