Friday, 6 March 2009

Quantatitive easing in numbers

Or to put it another way, the government is proposing to buy approximately 85% of the commercial paper market and 10% of its own debt.

That's quite a big intervention.


Anonymous said...

What are the implications, do you think, of such massive intervention?

Nationalist said...

The implications are for longer term inflation after the current deflation is over. In theory the government could withdraw the new money gradually as the economy picks up but I suspect they won't and devaluation will occur.