Monday, October 10, 2011
Miles makes the case for QE
Posted by David Smith at 06:15 PM
Category: Thoughts and responses

Next to Adam Posen, David Miles has probably been the most enthusiastic advocate of quantitative easing on the Bank of England's monetary policy committee. In a speech tonight, apart from making the interesting point that the global financial crisis has lasted as long as the First World War, he also argues that QE can be as effective now as in 2009.

Though gilt yields are low, they can go lower, he argues, and the rise in bank funding costs and the deterioration in the economic news made the case for action. I don't agree but it is a good defence. The speech is here.