THE GUARDIAN carried an interesting article on Tuesday, written by Zoe Williams, about Richard Murphy, the architect of Corbynomics. In it, Mr Murphy responds to the critics of his most arresting idea, "people's quantitative easing". Given that Mr Murphy has also responded to our misgivings about PQE (see his blog here, where he accuses us of "misinformation and fairy tales") it is worth looking at what he said.
To recap on PQE: it is a radical twist on a policy that the Bank of England has pursued since 2009. Instead of using newly created money to buy government bonds, as happens under ordinary QE, Jeremy Corbyn seems to want the BoE to use that cash for more productive purposes, by buying bonds from the national investment bank.
The first critique, as Mr Murphy sees his critics, "was that he was threatening the Bank of England’s independence". Mr Murphy responds by arguing the following; please try to read closely:
I’m deeply frustrated,...Continue reading
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