Stop depending on the kindness of strangers : low interest rates and the global economy / Brian Sturgess with a foreword by Sir Martin Jacomb.
By: Sturgess, Brian [author.]
.Contributor(s): Jacomb, Martin, Sir [writer of foreword.] | Centre for Policy Studies [issuing body.].Publisher: London : Centre for Policy Studies, 2017Content type: text Media type: computer Carrier type: online resourceISBN: 9781910627426.Subject(s): Bank of England | Monetary policy -- Great BritainOnline resources: Click here to access online Also available in print.
| Item type | Current library | Class number | Copy number | Status | Date due | Barcode | |
|---|---|---|---|---|---|---|---|
| Electronic resource | House of Lords Library - Palace Online access | ELECTRONIC RESOURCES (Browse shelf(Opens below)) | 1 | Available | 79567-1001 |
February 2017 will be the eighth anniversary of UK interest rates being lowered to 1%. This is unprecedented, as is QE. And this “unconventional monetary policy” is having severe economic consequences. This report warns that it is exposing the economy to great risk, not least as when the next economic downturn occurs, central banks will have few options other than more QE; has failed to stimulate economic growth; misallocated capital, and has encouraged ‘zombie capitalism’ and the rebuilding of corporate balance sheets ahead of productive investment; has failed to reduce deflationary pressures; has mispriced risk; has obliged pension funds to invest in low-yielding government bonds, exposing them to significant risk should interest rates rise sharply in the future; has boosted asset prices (particularly in share and house prices), thereby rewarding the already wealthy while punishing savers on lower incomes.
Also available in print.