The Law School at the University of Sheffield as come up with an interesting paper about the legalities of QE - primarily in the context of the Eurozone.
Clearly QE is the central bank buying Treasury bonds by proxy. You can wave hands and make arguments as much as you like, but ultimately that is what is happening. The central bank's new money helps replenish Treasury's buffers and reduces the relative amount of interest that Treasury is paying into the wider economy.…3spoken
Does QE 'finance' Government Spending? Of course it does. Get over it.
Neil Wilson
FTR I have no problem with it other than it is a short sighted policy that is removing interest income from the non-govt that many were trained to expect and have planned on this interest income being there to provide a means of subsistence in old age/retirement...
ReplyDeletersp,