tag:blogger.com,1999:blog-33150821.post1969033799897264273..comments2023-05-15T03:02:07.588+12:00Comments on Better Democracy NZ: Bank of England 'prints money'Steve Baronhttp://www.blogger.com/profile/18231150911705855174noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33150821.post-32218005553654658282009-03-21T11:26:00.000+13:002009-03-21T11:26:00.000+13:00The BoE is trying to cushion the economy by printi...The BoE is trying to cushion the economy by printing money - I think its a necessary evil. Yes its got many negatives as pointed out by the article, but not much is said about why it is being done. When lenders cut back lending, this decreases the money supply in an economy. The BoE cannot hope to print as much money as the money supply has fallen, but it does help. The real reason we are in this mess in the first instance is due to the sharp decrease in the money supply. Decreasing interest rates doesnt encourage savers (true) but it encourages other kinds of investment and spending - since the opportunity cost of saving in a bank is now much less attractive. I think this is the objective. Those who depend on interest will have to eat into the principle for a while .. such is life.Will Fouriehttps://www.blogger.com/profile/01891535570181948323noreply@blogger.com