Quantitative and qualitative easing again (flag)

blogs.ft.com — The UK Chancellor, Alistair Darling, has been busy repudiating the notion that the British government was planning to ‘print money’ to prevent deflation and stimulate the economy. He was reported in the Financial Times (January 9th, 2009) as saying :“Nobody is talking about ...

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FT Alphaville — ... Sandeep Parekh, former executive director of the Securities and Exchange Board of India, writes that t he first thing he did when he saw the infamous letter of B. Ramalinga Raju of Satyam Computers confessing to a $1.4bn fraud, was to compare the initials on the letter with his signature in the 2008 annual report. They did not tally even remotely. Maverecon: Quantitative and Qualitative easing again Just in case you didn’t get it in his previous blog posting, Willem Buiter, former MPC member, explains how the Bank of England has already started “printing money”. ...

QE confidential
FT Alphaville — ... easing is already underway donchaknow.  A little late to hide it now. The Telegraph continues: Among the details which will no longer be published are those revealing the extent to which London’s banks are using the Bank’s deposit facilities - a yardstick of pressure in the financial system. More specifically, the BoE’s deposit facilities are a yardstick for quantitative easing. Increases in bank reserves  (Unsterilized) are increases in monetary base. And as Willem Buiter will tell you , just such an increase in M0 - an increase in the quantity of money - is progressing ...

Nonsense about the Banking bill
Stumbling and Mumbling — ... 1. The idea that “printing money” is something sinister associated with banana republics is just gibber. As Willem Buiter says, printing money is what all central banks do. ...

Bernanke on QE and the exit strategy
FT Alphaville — ... approach, but rather the differences in financial and economic conditions between the two episodes. In particular, credit spreads are much wider and credit markets more dysfunctional in the United States today than was the case during the Japanese experiment with quantitative easing. To stimulate aggregate demand in the current environment, the Federal Reserve must focus its policies on reducing those spreads and improving the functioning of private credit markets more generally. See Willem Buiter for a good take. The stimulative effect of the Federal Reserve’s credit easing ...

This makes teaching money and banking harder
SCSUScholars — ... . This is, in fact, what Willem Buiter refers to as qualitative easing. Let me suggest that the first author of a money-and-banking text that has either qualitative or credit easing in its table of contents is going to make some sales.

HMT actions summary
FT Alphaville — ... “credit easing” last week in his speech at the LSE. It’s what Willem Buiter has called qualitative easing. Interestingly though: The programme also provides a framework for the Monetary Policy Committee of the Bank of England to use asset purchases for monetary policy purposes should the MPC conclude that this would be a useful additional tool for meeting the inflation target. In such circumstances, the scale of the scheme could be expanded, a further announcement would be made. Further details of the arrangements for the Asset Purchase Facility will be set out in an exchange ...

Clarity on QE at the BoE. Or not.
FT Alphaville — ... coy when they say that qualitative easing is a power they already have. Although qualitative easing through unsecured short-term lending, as mentioned above, is certainly possible, and certainly already occurring, qualitative easing through outright purchases is not. Buying non-gilt securities outright involves more credit risk than simply borrowing those securities over short periods. Credit risk that is large enough to really require the Treasury’s permission. Willem Buiter explains perfectly in a blog post last week: Qualitative easing or a combination of qualitative ...

Where’s our QE?
FT Alphaville — ... price inflation over the next 12 months rose to 1.5 percent in February from 1.1 percent in January, a survey for Citi by pollsters YouGov showed on Thursday.     For the next 5-10 years, the public expected inflation to average around 2.9 percent, up slightly from January’s record low estimate of 2.8 percent.     The Bank of England targets a 2 percent level for CPI. Related links: Quantitative easing in the UK - FT Alphaville Central banks live! - FT Alphaville Quantitative and qualitative easing again - Willem Buiter’s Maverecon

Quantitative easing: not much bang for the buck
FT Alphaville — ... and the “quantitative easing” approach pursued by the Bank of Japan. In essence, Bernanke is arguing that the Fed’s approach of targeting specific credit spreads and/or borrower groups will generate a better bang for the buck—more effective FCI easing for dollar of balance sheet expansion—than untargeted quantitative easing. We hope he is right.   Related links: Understanding US Economic Statistics - Goldman Sachs The pictorial quantitative easing - FT Alphaville Quantitative and qualitative easing again - Willem Buiter’s Maverecon, FT