Bank begins 'printing money' to fight slump- another 'boleh-land' in the making

There are a few 'boleh-lands' around the globe.
Here's just another place.
75 billion pounds of quantitative easing (up to 150 billion pounds)- it virtually means printing more money.
This strategy has been tried in Japan before without much success.
Also interest rate has been cut to 0.5%.
SO everyone here is saying- just spend the money and then ask the government for more.

So what is the moral of the story- in the land of boleh-land, there are more boleh-lands around.



Bank begins 'printing money' to fight slump

* Larry Elliott and Heather Stewart
* The Guardian, Friday 6 March 2009


The Bank of England yesterday announced unprecedented steps to prevent the deepest slump since the 1930s when it unveiled plans to inject up to £75bn into the economy over the next three months.

Alarmed by signs Britain's malfunctioning banking system is starving consumers and businesses of credit, chancellor Alistair Darling yesterday gave Threadneedle Street clearance to begin creating money - the last-gasp measure used by Japan to end a decade of recession and deflation.

The Bank said it would embark on quantitative easing next week, after its monetary policy committee cut the bank rate for the sixth time since the global financial system came close to collapse last October. The rate is now 0.5% - a level not seen before in the Bank's 315-year history.