Quantitative easing: A licence to print money?

The Bank of England's quantitative easing programme has been widely credited with helping stave off economic depression in the UK – for the time being at least. But what impact has it had on the outlook for inflation?

computer-printer-pound-note

The law of unintended consequences says that we must, in some way, pay for quantitative easing (QE) – an unconventional economic stimulus initiative that has seen the Bank of England pump £125 billion directly into the UK economy to stave off recession. In August, the central bank committed a further £50 billion to the programme, £25 billion above its original plans to create up to £150 billion on the UK's balance sheet. Surely the economic theory underpinning QE can't be so simple as to state

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