I am bemused how PQE funding of, say £50 billion a year over a few years, could give rise to inflation when, apparently the economy can absorb £1.1 trillion of new money created by bank lending over the same period.
PQE increases M0. Bank lending increases M4.
M0 is around £72 billion these days (absent QE). M4 around £2.2 trillion or so.
Maybe Ritchie needs to have a shufti at one of those textbooks he so disdains?
This simply makes no sense at all. PQE created money has no more, and because interest need not be paid, may well have much less inflationary effect than privately created money and yet the focus is being given to PQE funds. I cannot see why.
Go look it up Dear Boy, go look it up.