SMPC supports continuation of quantitative easing – August 2009
Liberty, contracts and private property are universal values
Interventionist policies are undermining the growth potential of the US economy
Bank rate should be held at 0.5%
The SMPC poll was carried out before the UK Office for National Statistics (ONS) announced a very weak second quarter GDP figure, on 24th July. This seemed to confirm the view expressed at the SMPC gathering that the green shoots of recovery might be wilting. However, subsequent e-mail correspondence revealed that some SMPC members thought that the ONS data were too weak to be valid, possibly because of excessive price deflation. A noteworthy aspect of the 21st July meeting was the amount of time devoted to discussing the risks of sovereign default or another major collapse in the international financial sector. Some members feared that the possibility of another adverse credit-market ‘event’ this autumn should not be ruled out.
Read the full report here.