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Quantitative easing and the U.K. economy

Author

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  • De Koning, Kees

Abstract

The Bank of England started with Quantitative Easing in 2009 and bought U.K. Gilts for £445 billion. The Bank subsequently bought a further £450 billion. The Bank recently increased its key interest rate to 3%. The pressure on household's budgets is immense. This paper proposes a different approach. Instead of QE aimed at increasing costs of borrowing, it proposes to use home equity - savings made in the past - to be used instead. Why and how this can be done is explained in this paper.

Suggested Citation

  • De Koning, Kees, 2022. "Quantitative easing and the U.K. economy," MPRA Paper 115288, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115288
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    File URL: https://mpra.ub.uni-muenchen.de/115288/1/MPRA_paper_115288.pdf
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    More about this item

    Keywords

    quantitative easing; home equity as a source of economic growth;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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