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Corbynomics: Quantitative Easing for People (PQE)
Key Excerpts from Article on Website of Huffington Post
Posted: September 13th, 2015
http://www.huffingtonpost.co.uk/adnan-aldaini/quantitative-e...
What is termed Corbynomics is Jeremy Corbyn's proposal that: "The Bank of England to be given a new mandate to upgrade our economy to invest in new large scale housing, energy, transport and digital projects: Quantitative Easing for people instead of banks." The money to fund these projects will be created electronically by the Bank of England. Only 3% of the money in circulation is in the form of coins and notes; the remaining, 97%, is created electronically by private banks every time they make a loan and by the bank of England under its Quantitative Easing programme. The recovery in the British economy thus far has been mainly based on inflating property and financial assets prices. The Bank of England has created 375bn, following the 2008 economic crash, that went into banks and financial markets through the buying of existing government bonds (Quantitative Easing for banks). Positive Money calculates that only 8% of that money went into the real economy, with the rest trapped in financial markets, inflating financial assets and property prices, and benefiting the top 5%. This has been money creation that creates bubbles in the economy, and when they burst, the fall out can devastate the lives of millions. Quantitative easing for people (PQE), in contrast, will bypass the financial markets and private banks with the money channelled through a National Investment Bank into the areas that Britain needs. This seems ... less risky to the economy than conventional Quantitative Easing.
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