Friday, September 16, 2011

George Osborne's admission of failure

"George Osborne has warned that the Bank of England’s strategy of quantitative easing is a “leap in the dark”. The Shadow Chancellor described the decision to effectively print more money as a “last resort”, necessary because of the “complete failure” of Labour’s other measures to tackle the recession. He told BBC News, "I don't think anyone should be pleased that we have reached this point. It is an admission of failure and carries considerable risk.” He stressed, "Let us hope that this approach taken by the Bank of England does lead to an easing of credit conditions.” And he warned, "This is a leap in the dark and we will see whether it works."
"George Osborne has opened the door to new forms of quantitative easing by the Bank of England as concerns mount in the Treasury over the state of the economy. Speaking to journalists in Marseilles, the chancellor made it clear he saw no barriers to a second round of quantitative easing – creating money to pump into the economy – if a request came from the Bank, and raised no objections to the possibility of the Bank extending its purchases to assets other than gilts"

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