QE – one year on

doi:10.1017/CBO9781139044233.009

9 - QE – one year on

Published online by Cambridge University Press: 05 November 2011

Spencer Dale

Edited by

Jagjit S. Chadha and

Sean Holly

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Jagjit S. Chadha: Affiliation:
University of Kent, Canterbury
Sean Holly: Affiliation:
University of Cambridge

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Summary

Introduction

This has been a truly extraordinary year for our economy and for economic policy.

A year ago – almost to this very day – the Monetary Policy Committee conducted its first gilt auction as part of its asset purchase programme, or its policy of quantitative easing as it became known. The need for policy action was clear. The three months to March 2009 are estimated to have seen the sharpest quarterly contraction in GDP since comparable records began in the 1950s. Manufacturing output was contracting at an annualised rate of close to 20 per cent. Claimant count unemployment was rising at the fastest rate on record.

Type: Chapter
Information: Interest Rates, Prices and Liquidity
Lessons from the Financial Crisis
, pp. 222 - 232

DOI: https://doi.org/10.1017/CBO9781139044233.009 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2011

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