Interesting reveal in Bill's post that Tom linked down-thread on the UK situation where in between Bill and the other UK lefty economist stuck in a womanish dialectic exchange of ever more figurative language and meanwhile they continue to get nowhere.. we can read from BOE Carney:
Back in 2009‑10, the MPC stopped at 0.5% and then began to purchase assets because, at the time, the feeling was that, given the balance sheets, particularly building societies’, lower interest rates would be counter‑productive. It would undercut the capital position of building societies and further restrict access to credit. A more effective way to provide that stimulus was through asset purchases.
So BOE Carney himself doesnt exhibit an adequate understanding of the regulatory accounting abstractions.
Rate reductions in fact increase bank residual you can see this in Mike's latest report on the US system; also, Reserve Asset increases LOWER the regulatory ratios NOT increase them as Assets are in the denominator.
Well as a result Carney thinks the asset purchases which increase the Reserve Assets at the banks will then be able to be "lended out!" (the figurative "cup of sugar!") and increase system bank credit in this continuing classic case of cognitive reification that typifies Monetarism.
Carney is simply not qualified for that job... he does not possess (what should be) the necessary skills in abstraction... he doesn't exhibit any understanding of the relevant accounting abstractions.
