This week the Bank of England is very likely to reduce interest rates.
It might also resume conventional QE.
Neither will work. They are failed monetary policy.
What we need is fiscal policy.
VAT cuts would be a start.
Acceptance of more debt would help (and conventional QE only makes sense as a backstop to this).
But most of all we need People’s Quantitative Easing, or Green Infrastructure Quantitative Easing as it was when I proposed it.
I never knew that lowering interest rates and QE had failed. That Britain and the US have done very much better than the eurozone, where they lowered rates later and started QE later, would to me be an indication that they work.
But then I’m not selling a magic money tree, am I?
“VAT cuts would be a start”
Aren’t those rates fixed by the EU?
Rob, the EU mandates a VAT rate between 15% and 25%, so we could reduce it a bit.
Reduced interest rates is letting me pay off my mortgage faster than I could. I’ll soon have paid it off and have a competative advantage over those suckers who have to pay to have a roof over their head.