The Great Debate UK

from The Great Debate:

In praise of smaller banks, less volatility

December 17, 2009

-- James Saft is a Reuters columnist. The opinions expressed are his own. --

If we want a world with safer banks, we need to be prepared for the consequences; lower growth over a painful medium term but the promise of making it up over the long run as we suffer less devastating financial blowups.

from UK News:

Too big to fail? Guerrilla central banking and the last resort

November 25, 2009

ukreuterscomDeciding it was safe to come clean because banks are now on a more even keel and the worst of the credit crisis is behind us, the Bank of England has told the nation that at the height of the turmoil it secretly lent Royal Bank of Scotland and HBOS a colossal £62 billion, which is more than the entire British defence budget.

from Breakingviews:

Inflation’s gonna be OK, says Merv

November 11, 2009

Mervyn King, Governor of the Bank of England, sees a long, hard road back to the path we thought we were on before the financial crisis broke. Just how long is shown by  Chart 2 in Wednesday's Quarterly Inflation Report. The Bank's Monetary Policy Committee does not expect Britain's GDP to return to its peak, 2007, level until 2011, and there's an outside chance that even in 2012, the country's output will be no more than it was in 2006.

Bank hedges bets with QE expansion

November 5, 2009

BRITAIN-BANK/RATESWhen the Bank of England decided to expand its quantitative easing policy by 25 billion pounds to 200 billion on Thursday, it was essentially hedging its bets.

from Commentaries:

Do banks really need to hoard liquidity?

October 7, 2009

That's the provocative question posed by Willem Buiter. His latest, characteristically lengthy, blog post tackles the regulatory vogue for forcing banks to hold much greater reserves of liquid assets - in practice, government bonds.

Things just got a lot worse for inflation

September 23, 2009

David KuoDavid Kuo is director at The Motley Fool. The opinions expressed are his own.-

from Commentaries:

So that’s why the Bank buys all that government debt

September 17, 2009

I've found the answer to the monetary puzzle de nos jours. The ritual of the UK Treasury's DMO issuing new government debt one day, only to have the Bank of England buy similar amounts of almost identical stock the next, has puzzled me ever since Quantatitive Easing began.

Enjoy low inflation while it lasts

August 18, 2009

david Kuo– David Kuo is director at the Motley Fool. The opinions expressed are his own.-

from The Great Debate:

BoE extends QE, fears 1930s re-run

August 6, 2009

John Kemp

-- John Kemp is a Reuters columnist. The views expressed are his own --

The Bank of England's decision to continue with its asset purchase programme, or quantitative easing (QE), at the rate of 50 billion pounds per quarter in Oct-Dec, unchanged from Jul-Sep, shows bank officials are more worried about ending support for the recovery too soon than about risking inflation by leaving it too late.

One cheer for Darling’s reforms

July 8, 2009

REUTERS— Margaret Doyle is a Reuters columnist. The opinions expressed are her own —