Comments on: Financial regulation: Economic policy puzzle of the day http://touchstoneblog.org.uk/2009/06/financial-regulation-economic-policy-puzzle-of-the-day/ Policy news and comment from the Trades Union Congress (TUC) Sat, 11 Feb 2012 20:54:53 +0000 hourly 1 By: sm http://touchstoneblog.org.uk/2009/06/financial-regulation-economic-policy-puzzle-of-the-day/comment-page-1/#comment-2669 sm Sat, 27 Jun 2009 16:47:39 +0000 http://www.touchstoneblog.org.uk/?p=3055#comment-2669 Isnt QE causing a bubble in the purchases of financial assets and bonds? When this QE ends this 'demand' will fade. Interest rates will then tend to rise other things being equal in a credit crunch. How should low interest rates be paid for by 1)taxpayers ,2) spending cuts or 3) inflation. Or what balance of these? Until the election only the unfortunate casulaties so far. Post the elections all 3. Isnt QE causing a bubble in the purchases of financial assets and bonds?
When this QE ends this ‘demand’ will fade. Interest rates will then tend to rise other things being equal in a credit crunch.

How should low interest rates be paid for by 1)taxpayers ,2) spending cuts or 3) inflation. Or what balance of these?

Until the election only the unfortunate casulaties so far. Post the elections all 3.

]]> By: What will do for us? | called2account http://touchstoneblog.org.uk/2009/06/financial-regulation-economic-policy-puzzle-of-the-day/comment-page-1/#comment-2664 What will do for us? | called2account Fri, 26 Jun 2009 07:00:27 +0000 http://www.touchstoneblog.org.uk/?p=3055#comment-2664 [...] Financial regulation: Economic policy puzzle of the day | ToUChstone blog: A public policy blog from.... Maybe someone can solve this for me.  Which one of these is more likely to thrust the UK into further economic turmoil in the next two years: another massive bubble and crash in the City or the Monetary Policy Committee making some duff decisions on interest rates? [...] [...] Financial regulation: Economic policy puzzle of the day | ToUChstone blog: A public policy blog from…. Maybe someone can solve this for me.  Which one of these is more likely to thrust the UK into further economic turmoil in the next two years: another massive bubble and crash in the City or the Monetary Policy Committee making some duff decisions on interest rates? [...]

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