Some observations from signed up members of the sensible party

First, from Chris Dillow: our gilt rates  do not makes us a more risky proposition than Italy: Granted, UK five-year yields are slightly higher than Italy’s: 2.81% vs. 2.72% for benchmark bonds. But this is not a pure measure of creditworthiness. Bond yields also depend upon inflation and currency risk. One reason why gilts yield

QE ends; gilt market shrugs; the anniversary verdicts come out

So: did QE work?  The Guardian says that ‘The Bank of England deserves a little credit” for averting Depression. In the event, the apocalypse never quite materialised. Last year was the weakest since the war, and the 18-month-long recession saw 6.2% wiped off economic output; but most economists believe it could have been much worse

Changing your mind about QE

Chris Giles’ excellent blog has highlighted the ‘rationalisation after the fact’ of QE – changing your mind about how it works.    Taking the MPC minutes, they demonstrate how the emphasis has changed over time, using an amusing colour coded pair of tables.  Their conclusions: it is obvious the Bank has flipped and flopped over the