Friday 6 March 2009

Quantitative Easing? What idiot called it that?

Ken Clarke has been typically outspoken while talking to a reporter from the Manchester Evening News.

A few moments in to an interview he said:

"The Bank [of England] is going in for quite drastic measures of an unprecedented kind, which some idiot has called quantitative easing."

Watch the video here.

Hat tip to Centre Right.


Wrinkled Weasel said...

Seems like we live in an era of Orwellian tergiversation.

Ralph Musgrave said...

QE is not a totally illogical name. Most governments most of the time control money via interest rates, ie they control the PRICE. An alternative way of controlling the price and/or quantity of any commodity is to concentrate on the VOLUME being produced rather than the PRICE. "Easing" refers to "relaxing restrictions on the supply" to coin a phrase. I agree QE is a bit of a mouthful, but its not a totally illogical phrase.

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