In this final video my series on money, banks and related topics I explain how QE, or quantitative easing, is the final component in the money creation process in the UK at present.
I don't guarantee that by watching all five videos in this series that you will be an expert on money. But you'll probably know more about it than 99% of people in the UK. And that's not bad.
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I watched all 5 and learned nothing. No graphs, no charts, no references, no sub-titles for this supposedly inclusive age.
Not a thing.
But that may be because I am deaf.
I think what you meant to say is that if you were able to listen to them then you might learn something.
Just joking – the videos were well up to your usual standard.
We are planning subtitles in future
And they are an option now
Just in case…
I am half way through Stephanie Kelton’s The Deficit Myth.
She is also good at explaining complex and (to most non economists) unfamiliar concepts. She does say her agents helped her to adapt her style.
Unless new ideas are more widely understood, we will be stuck in a trap of our own making.
Thanks for this week’s videos
Thanks
Thanks for this series of videos on money. I’ve found them very useful and I’ve got my head round most of it. I didn’t realise that commercial banks generate new money based on the borrower’s promise to repay. I rather naively assumed that the bank went “down stairs” to the vault and extracted the loan sum from the pile! The process of generating new money now explains why consumer spending is so important to the economy.
But QE, I haven’t fully got that one yet! Do you have any diagrams that might graphically illustrate the process?
One more thing. Are these explanations universally accepted as the gospel of money? Or are there competing theories I should also consider?
Again, many thanks.
This narrative is not that far from the BoE line
It is not universally agreed – but I think the overall argument is now broadly accepted
Indeed!
Would it be true to say at any time since the Exchequer and Audit Departments Act 1866, the UK government could have legally used QE? Was it ever considered before, perhaps under a different name?
Before 2008 the Ways and Means Account was used for a not wholly dissimilar purpose
But QE was not considered