New campaign calls for Treasury and Bank of England to “Create money for people, not financial markets” and abandon QE.
Campaigners with the pressure group Positive Money gathered outside the Bank of England on Wednesday evening to launch a new campaign calling for an end to quantitative easing in favour of alternative monetary stimulus measures. The group included City workers, academic economists and a veteran paratrooper.
The event came just two weeks after the Bank of England announced its intention to create £70bn in an attempt to stave off a recession. It will use the new money to flood financial markets and push up stock and bond prices.
At the launch event, Positive Money supporters held up banners saying “QE drives inequality”. This reflects increasing concern about QE’s distributional effects. A Bank of England report showed that because QE has kept stock and bond prices high, and 40% of stock market wealth is held by the richest 5% of households, QE has made those households better off by an average of £128k each.
Positive Money is launching its campaign for QE to be abandoned in favour of an alternative which doesn’t have the same negative side-effects. It recently coordinated a letter from 35 leading economists calling on the Chancellor to support the creation of new monetary policy tools. Alternatives to QE proposed by Positive Money include creating new money to finance a cash transfer to households, a tax cut, infrastructure spending or house-building.
Director Fran Boait said :
Theresa May has warned that QE increases inequality, and yet her government has just given the go-ahead for the Bank of England to do more of it. This time, we’re not going to stand back and watch this happen.
We’ve launched this campaign to call on the Chancellor to abandon QE and allow the Bank of England to create money for people, not financial markets. We are building a coalition of economists, policymakers and ordinary citizens to hammer this message home over the coming months”.
One of the economists supporting the campaign, hedge fund manager Eric Lonergan said, “Quantitative easing as currently implemented is distorting asset prices, with little tangible benefit to the economy. It may even be damaging, given its impact on pensions and savings.
These are no longer controversial observations. We need monetary policy to directly target household disposable income – through a citizen’s dividend”.
Like our Facebook Page
Is It Possible to Work in Tech Without Harming the Planet?
Zero Waste Living and Its Importance
Investing in a Sustainable Environmental Future for Northern Virginia
Prominent Trends in Seafood Sustainability in 2022
Sustainable Landscaping Tips for Your Property
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
Is the Hyundai i30 A Valuable Investment?
Is Couchsurfing a Good Option for Eco-Friendly Traveling?
How To Set Up A Sustainable Smart Home
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy12 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor