UK government could learn from US authorities
Despite the fact that the UK government was the first in the world to introduce quantitative easing, the US authorities have taken this particular form of economic assistance to new levels. Such is the current dependence by the US economy on quantitative easing, and the billions upon billions of dollars being poured into the system, that the US government will need to wean the economy off this particular medicine.
The authorities are looking to reduce the number of Treasuries which they will purchase between now and October and eventually close the quantitative easing program at the end of October. However, such is the concern that the US economy could take a further nosedive if the quantitative easing program was ended suddenly that opinion is very much split on how to address the situation.
This has many similarities to a drug addict needing their "medicine" to survive and ultimately needing assistance to be weaned off the substance in question. It is easy to forget that the US government and the US authorities are still at the centre of the worldwide economy and any mistakes or overreactions will have consequences further afield. Will the UK government learn a trick or two about closing its own quantitative easing program in due course?
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