Quantitative Easing: Committee to examine whether inflationary fears justified, the future of QE, and the merits of ‘helicopter money’ approaches
On Tuesday 16 March at 3pm, the Economic Affairs Committee holds its fifth set of evidence sessions on its Quantitative Easing inquiry.
- How much has QE affected the exchange rates of the countries where it has been implemented?
- Will the Biden stimulus, combined with loose monetary policy, lead to excess inflation?
- In what ways, if any, could QE undermine the independence of central banks? And if so, could this spark higher inflationary expectations?
- In 2013, Powell warned Bernanke that the Fed’s failure to signal an end to ultra-loose monetary policy was prompting investors to take dangerously risky bets. Should he now take his own advice?
- How does the Fed’s QE programme effect policy decisions taken by the Bank of England, and vice versa?
- How likely, and desirable, is it that central banks will continue to pursue QE as the economy recovers from the pandemic?
- How likely is it that inflation will return in the UK, and how does this relate to the future of the Bank’s QE programme?
- Should the Bank be actively considering alternative versions of QE?
- What are the advantages and disadvantages of using alternative monetary policy tools, such as ‘helicopter money, over more orthodox approaches which aim for stable monetary policy and expansionary fiscal policy when necessary?
- To what extent would the use of so-called ‘People’s QE’, or ‘helicopter money, bring into question the accountability of unelected officials making quasi-fiscal decisions?
- Was the Government right to include a commitment to climate change and environmental sustainability objectives in the Bank’s mandate?