Too Loose for Comfort
AbstractThis paper argues that the benefits of the current US and UK monetary policy are limited and outweighed by significant costs. The policy of low or negative real interest rates, combined with quantitative easing, may be helpful to large companies and large banks. However, due in part to changes in the financial system over the past 30 years, the policy has not resulted in sufficiently lower borrowing costs or increased access to credit, especially by job-producing SMEs, to compensate for the adverse impact on savers, endowments, pension funds, insurance companies and others. We conclude that the policy is probably retarding rather than assisting economic recovery and that funds used for quantitative easing could be more usefully put towards a form of â€˜credit easingâ€™.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE in its journal World Economics Journal.
Volume (Year): 13 (2012)
Issue (Month): 3 (July)
Contact details of provider:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ed Jones).
If references are entirely missing, you can add them using this form.