In praise of QE

It is working and the MPC should go further if necessary

According to latest figures from the Bank of England, net borrowing by the household sector declined by some £0.6bn in July. This was the first outright contraction in outstanding personal sector liabilities since records began in 1993. Some £0.4bn of the decline was attributable to net mortgage lending with the remaining £0.2bn to a fall in the amount of outstanding consumer credit. At the same time, net lending to the non-financial corporate sector declined by a record £8.4bn. Taken at face value, the obvious conclusion – as has been intimated by a wide spectrum of economists and politici...