Does QE cancel the government bonds that the Treasury reacquires?

Posted on

Quantitative easing is not widely understood, but sometime soon will have funded (albeit, indirectly) almost £900 billion of government spending.

It will have done so as a result of the UK Treasury having, in effect, reacquired its own bonds from the financial markets. It will have done so using money created, out of thin air, for that purpose by the Bank of England.

The question is, in that case, whether these bonds are effectively cancelled or not. That's what I discuss here:

Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:

You can subscribe to this blog's daily email here.

And if you would like to support this blog you can, here: