It does seem likely that QE has had impact to me. These impacts are almost entirely in asset price inflation, whether of gilts, equities, housing, land more generally, but not now of commodities, where the impact looks to have been short lived. So, QE has inflated the parts of the economy where wealth divides already exist. But it has not delivered real economic activity or inflation although these were its goals.
The aim was to inflate asset prices: so as to get people to move out along the risk curve in search of yield. That was the bloody point of it all. Ricthie has therefore just stated that QE worked and then announced that it didn’t.
So, we need another plan: a plan that injects real economic activity and money into the real economy. Tax cuts could do that, but are hard to reverse.
God forbid that anyone should keep more of their own money, eh? And what’s so damn difficult about changing tax rates anyway? Make employers NI rate 0 for 24 months, why not? After all, Keynes did approve of the idea…..