Scott: Forget QE2 - we need fiscal stimulus

F&C's Ted Scott has called on the Monetary Policy Committee (MPC) to abandon plans for QE2 and buoy the economy using fiscal measures.

Scott, director of global strategy at the group, said the first round of easing merely sent commodity prices sky-rocketing, as banks failed to pass on the additional cash to consumers and businesses. “I am sceptical about the effectiveness of QE, and think it would be better to have fiscal stimulus rather than monetary stimulus,” he said. “QE can help confidence and be positive for asset classes, but will only be effective if the money gets out into the broader economy.” Last week the MPC signalled it may unveil further QE measures, amid concerns over continued economic weakness in...