Jeremy Corbyn’s quantitative easing which would have the Bank of England printing money to fund his pet projects is the economics of the kindergarten, if not the madhouse. As with all leftist nonsense the “People’s QE” would involve stripping the central bank of independence, driving up inflation and hurting the poor and elderly. Governor Mark Carney warned that any change in the Bank’s mandate to keep prices stable by controlling inflation through interest rates would be simply catastrophic.
QE must be left for an emergency and we now have a soundly based economy and a solid long-term recovery so printing money and borrowing from the money markets is idiotic.
Interest rates will rise as the recovery continues and higher wages drive up inflation but the Bank will have to feel its way and the last thing it needs is interference from the loony left.
(Dr) John Cameron