{"id":42200,"date":"2018-06-15T09:11:04","date_gmt":"2018-06-15T08:11:04","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=42200"},"modified":"2018-06-15T09:11:04","modified_gmt":"2018-06-15T08:11:04","slug":"quantitative-easing-is-new-government-created-money","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2018\/06\/15\/quantitative-easing-is-new-government-created-money\/","title":{"rendered":"Quantitative easing is new government created money"},"content":{"rendered":"

The Bank of England published\u00a0its accounts to 28 February 2018<\/a> yesterday (I have no idea why it uses that date: does anyone know?)<\/p>\n

The cash flow statement showed this:<\/p>\n

\"\"<\/a><\/p>\n

Note the \u00a386.8bn advanced to Bank of England Asset Purchase Facility Fund Limited. That is new quantitative easing by any other name.<\/p>\n

And then note the \u00a389.9 billion of additional deposits.<\/p>\n

And also note a remarkably similar pattern in behaviour last year,\u00a0 involving slightly larger sums of around a hundred and \u00a3108 billion.<\/p>\n

What is happening?\u00a0 Quite simply quantitative easing is creating new bank deposits. As modern monetary theory suggests, money advanced creates what are, in effect, new savings, even if in this case they are reserves held by banks with the Bank of England.<\/p>\n

This is confirmed by the balance sheet:<\/p>\n

\"\"<\/a><\/p>\n

Note 'other loans and advances' of \u00a3572 billion. These are made up almost entirely of quantitative easing advances and as is clear,\u00a0 the sums are almost exactly matched by deposits.<\/p>\n

I think there can now be no doubt:\u00a0 the government can, and does, create money at will.\u00a0 The only issue left to discuss is how that money should be used.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of England published\u00a0its accounts to 28 February 2018 yesterday (I have no idea why it uses that date: does anyone know?) The cash
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,35],"tags":[],"class_list":["post-42200","post","type-post","status-publish","format-standard","hentry","category-banking","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/42200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=42200"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/42200\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=42200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=42200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=42200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}