quantitative easing

Institute of Directors Calls for More Quantitative Easing

The Institute of Directors (IoD) is calling for a £50 billion extension in quantitative easing, the unconventional monetary policy whereby a pre-determined quantity of money is injected into the economy. Graeme Leach, Chief Economist at the Institute of Directors said: "The time to launch QE2 has arrived. The downside economic risks are sufficiently great to warrant an extension in quantitative easing now, in order to avoid the risk of a double-dip recession. We already have an L-shaped economic recovery and the hit to business and consumer confidence over the summer risks a slip back into recession, which could have dire fiscal consequences. Expanding QE by £50 billion initially is a sensible and limited response." The Institute of Directors says that an extension in... »