Monday, 7 September 2015

Episode 3 - To QE or not to QE

Recorded 5 September 2015


In this episode we get stuck into a topical subject: the proposal for People's Quantitative Easing (PQE) that has been suggested by the UK Labour leadership contender Jeremy Corbyn.


  • Money is routinely created by central and private banks.
  • What is helicopter money and why you'd use it?
  • Quantitative Easing (QE) is when central bank created money is used to buy bonds, i.e. existing gov debt.
  • All economists agree that investment is too low in the UK.
I am sorry - Dave Preston

PQE proposal

24m 15s
  • Jeremy Corbyn's policy mentions PQE in passing.
  • Richard Murphy's more detailed proposal.
  • Criticisms of PQE
Jungle Moon - Yumi Kurosawa

What if?

1h 00m 55s
  • Would Corbyn implement PQE?
  • If so, what would be the implications.

References mentioned in the discussion

(In reverse chronological order)

Simon Wren-Lewis - 2 Sept 2015 - Helicopter money preferable to QE

Frances Coppola - 2 Sept 2015 - Real purpose of central banks - overview of central banks, MMT, PQE and reality of election cycle

Bill Mitchell - 19 August 2015 - Embrace money financing as the norm?

Simon Wren-Lewis - 16 August 2015 - On drawbacks of Corbyn's QE

Jeremy Corbyn - 22 July 2015 - Economic vision (no mention of PQE!)

Jeremy Corbyn - 22 July 2015 - p6 of this document briefly mentions PQE

Richard Murphy's - 12 March 2015 - Original description of PQE but called Green Investment Fund

A more detailed summary of the our conversation and conclusions can be found here.

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