Has QE worked for the UK?

QE

John Clarke, chief investment officer at GHC Capital Markets, argues that more QE, not less, is the answer to the UK's economic problems.

Since March 2009, the Bank of England’s Monetary Policy Committee has purchased some £375bn of long-dated gilts, all of which has been financed by the issuance of new reserves to the banking system. This has been undertaken with the specific intention of increasing the rate of growth in GDP. According to a large number of academics and economic commentators, because this monetary stimulus has coincided with a protracted period of particularly weak economic activity, the implication is that quantitative easing (QE) has not worked. In our view, this is just plain wrong. Contrary to conv...