Tuesday, February 24, 2009



A member of the Bank of England’s monetary policy committee today made the case for quantitative easing, the controversial measure to boost the economy by "printing money" to increase the money supply.

Andrew Sentance said there was a “strong case” for the use of quantitative easing to avoid “persistent and prolonged deflation”.

Rate-setters fear that, having cut interest rates to a historic low of 1 per cent, they have exhausted their arsenal to fight off a fall in the general price levels that would send Britain into a spiral of deferred demand and declining output.



# posted by intcoex : 5:34 AM




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