Quantitative easing and the U.K. economy

De Koning, Kees (2022): Quantitative easing and the U.K. economy.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: quantitative easing; home equity as a source of economic growth
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies

References

-A U.S. Home Equity Withdrawal Scheme; MPRA Paper 115113 RePec:pra:mpra:115113 Savills; Values of U.K. Housing Stock

https://www.bing.com/search?q=savills+uk+lvalue+of+u.k.+housing+stock&qs=HS&pq=savills+uk+&sk=HS1&s c=10-11&cvid=33326733C8E34295AB3D83A9F26674BA&FORM=QBRE&sp=2 3. The Times Newspaper U.K. 4 th November 2022

https://www.thetimes.co.uk/article/muddled-message-on-interest-rates-from-the-bank-ofengland-5vvxdpj7z