What can £100bn buy? Economic growth, if we are to believe in Mr. Osborne’s £100bn plan for UK economy. If previous quantitative easing programmes have not done that, I wonder what will make this round succeed.
To be fair, quantitative easing can help liquidity and encourage consumption, which would buy us some time. But will that be enough? I think it can do little to revive the economy if not backed by comprehensive changes in government policy. The government will have to make more changes to attract business investors, encourage entrepreneurs, foster innovation, and improve industrial productivity. If not, the government will soon find out that love is not the only thing that money cannot buy.
