Really?
Let's check the evidence;
BoE began QE in 2009, inflation was 2.1%.
Following years:
2010 - 3.1%
2011 - 3.7%
2012 - 2.4%
2013 - 1.9%
2014 - 0.7%
2015 - 0.5%
2016 - 1.8%
2017 - 2.7%
2018 - 2.0%
2019 - 1.4%
2020 - 0.8%
2021 - 4.8%
Pound in biggest monthly fall against the dollar since 2016...
- Thread starter ellal
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Really?
Let's check the evidence;
BoE began QE in 2009, inflation was 2.1%.
Following years:
2010 - 3.1%
2011 - 3.7%
2012 - 2.4%
2013 - 1.9%
2014 - 0.7%
2015 - 0.5%
2016 - 1.8%
2017 - 2.7%
2018 - 2.0%
2019 - 1.4%
2020 - 0.8%
2021 - 4.8%
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Blair (and most of the rest) understood the importance of being a currency issuing govt.
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Eh?
D
Deleted member 18243
Try "BRIBING THE PEOPLE WITH THEIR OWN MONEY".
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He hasn't. The true evidence is how inflation behaved. The other aspect is just how many GBP exist. Bank notes - hard currency is not representative.
I posted a German link that does a pretty good job of explaining the 2 periods of inflation we have seen. BofE interventions have to be mentioned so go check when they have been done. The country is run in a way that expects some inflation so don't forget that.
We can expect more base rate increases. However here comesTruss but that would be gov interference if they don't increase. On the other hand the BofE might decide no more increases for a while or even cuts again.
This also dates some inflation and also mentions another problem related to accommodation costs. As far a I can see it only uses known figures
www.bigissue.com
Increase a bit out of sync with @gone 's ideas.
Minimum wage UK 2023: How does Britain compare to the rest of the world?
The UK minimum wage is going up on April 1, so we compare it to the US, Australia, Ireland and Spain to see who has the highest in the world
www.bigissue.com
Increase a bit out of sync with @gone 's ideas.
Few ever do. They seem to be happier with their own made-up version of reality.
On it's own and without understanding what else is going on the number of £s in existence isn't indicative of anything at all.
I listed all the years Boe undertook QE and the annual inflation rates for those years. Conclusion: QE didn't cause inflation.
Yes, agree, BoE has a 2% target.
Truss is a neoliberal monetarist. When all you have is hammer (monetary policy) everything looks like a nail (interest rate manipulation).
BoE independence is a myth - all board members are political appointees - it'll do exactly as it's told.
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That's the destruction of the post war consensus and 40+ years of neoliberal ideology for you.This also dates some inflation and also mentions another problem related to accommodation costs. As far a I can see it only uses known figures
Minimum wage UK 2023: How does Britain compare to the rest of the world?
The UK minimum wage is going up on April 1, so we compare it to the US, Australia, Ireland and Spain to see who has the highest in the world
Increase a bit out of sync with @gone 's ideas.
D
Deleted member 18243
We are in the middle of hyperinflation. You probably think that the following photograph is from 1930s Weimar Germany, but it's actually me last week going to pay the gas for the month.
Lol, that'll be the cash Truss will be handing out.
Has she said how she is going to magic up more energy?
Sure, it's inflation but it's not hyperinflation, at least not yet.
Back to the question, it's a genuine one, where do you think £s come from?
Could that be because the rest of the world was doing the same? (and has been since the crash). Devaluation will raise the cost of imports, UK imports more than it exports so will fuel inflation. But if everybody else is devaluing at the same time?
I can see what you are getting at, but no, QE doesn't 'devalue' the currency at all as it's not money creation, it's an attempt at monetary policy - the BoE itself makes this quite clear. It was meant to inflate asset prices which would then make the asset holders feel better and go out and start spending.
If your point held true then you would expect Japan to have experienced high inflation between 2001 and 2006 when it ran it's first QE program as, at that time, it was the only country doing it. You can check JPN inflation figures for that period easily enough.
Here's a fuller explanation of what QE actually is:What is Quantitive Easing?
off course quantitive easing dilutes the value off the money in everyone pocket
you have a set value and print perhaps 10% more currency a pound must now cover a £110 value so dilluted what you do with the manufactured[printed notes ] can only dilute the value off the overall "value "
you go into a pub 10 people put 10 pound in the kitty so £100 you then have a another person print another £10 voucher as quantitive easing [no added value but worth the same] you now have 11 people sharing the £100 so your 10 pounds is now worth £9 and a few pence
you have a set value and print perhaps 10% more currency a pound must now cover a £110 value so dilluted what you do with the manufactured[printed notes ] can only dilute the value off the overall "value "
you go into a pub 10 people put 10 pound in the kitty so £100 you then have a another person print another £10 voucher as quantitive easing [no added value but worth the same] you now have 11 people sharing the £100 so your 10 pounds is now worth £9 and a few pence
Once again, and probably for the last time, QE is not money printing.
Here's the section on QE from the WGA 2010-11 have a look and point out what you think is wrong with it.
Also, did you read the article I linked to above? If so, please explain what you think it gets wrong about QE.
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