The BoE continues, “Or they may buy other assets instead, such as shares or company bonds. That will push up the prices of those assets, making the people who own them, either directly or through their pension funds, better off. So they may go out and spend more.”
“May go out??” Why not look at the actual evidence here? This study found that in recent years consumer spending rises by one THOUSANDTH of a dollar for every dollar increase in a consumer’s stock market assets. So boosting stock market prices is an absolutely brilliant way of boosting consumer spending, isn’t it?Read it at Ralphonomics
Hogwash from the Bank of England on QE.
By Ralph Musgrave
Regardless of which side of the Atlantic QE is practiced, the result is always the same.