For a country that’s supposedly a little bit cash strapped, the head of UK’s Bank Of England, Mervyn King, has confirmed that there could be a further injection of cash into the UK economy reports Reuters.
The technique, known as quantitative easing (QE) has divided pedigree economists with regards to its efficiency in keeping the UK economy’s head above water. The head of the BOE ruled out any alternative stimuli such as giving money directly to the governments, stating that combining fiscal and monetary policy was dangerous.
Currently, the Bank Of England has given the nod to QE that has now exceeded £375 billion. Aside from the questionable impact on the economy QE is expected to create inflationary pressures in the future.