Comments on: Quantative Easing is latest effort to stimulate lending in the UK http://justanother24hours.com/politics/quantative-easing-is-latest-effort-to-stimulate-lending-in-the-uk/ Wed, 12 Oct 2011 12:09:45 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Lakun Agrawal http://justanother24hours.com/politics/quantative-easing-is-latest-effort-to-stimulate-lending-in-the-uk/comment-page-1/#comment-5989 Lakun Agrawal Mon, 09 Mar 2009 21:13:30 +0000 http://justanother24hours.com/?p=368#comment-5989 Printing money is usually a recipe to create higher inflation. I think this policy might help stimulate a bit of lending, but with consumer confidence shot, I wonder whether it will make much difference. The huge downside risk in this current environment is stagflation (low interest rates + high inflation) - kinda the worst of both worlds. As well as help give the banks the ability to lend - governments around the world need to try and bring confidence and optimism back to consumers. There will be no recovery until Joe Public starts opening their wallet again, and all these stimulus packages are reliant on people spending again. I think Barack Obama is the only world leader I have heard who has said a positive message (the "We will recover" speech a week or two ago). I'd like to see more of that from our leaders. Printing money is usually a recipe to create higher inflation. I think this policy might help stimulate a bit of lending, but with consumer confidence shot, I wonder whether it will make much difference. The huge downside risk in this current environment is stagflation (low interest rates + high inflation) – kinda the worst of both worlds.

As well as help give the banks the ability to lend – governments around the world need to try and bring confidence and optimism back to consumers. There will be no recovery until Joe Public starts opening their wallet again, and all these stimulus packages are reliant on people spending again.

I think Barack Obama is the only world leader I have heard who has said a positive message (the “We will recover” speech a week or two ago). I’d like to see more of that from our leaders.

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