Via Bank of England governor urged to keep cash taps running | Business | The Observer :
Mervyn King, the Bank of England governor, faces pressure this week to forge ahead with quantitative easing, the drastic policy of creating money out of thin air to fight recession, amid growing signs that the Bank’s policymakers are preparing to turn off the cash taps.
But see also Anthony Evans: Quantitative easing is an exotic label for a discredited policy | Comment is free | guardian.co.uk :
The biggest danger of QE – one that no economist would deny – is the destructive inflation that it unleashes. We are asked to have confidence that our monetary authorities have both the omniscience to know when inflation will shoot upwards, and the benevolence to act in the public interest when this occurs. History should give us cause to pause.
