University of Birmingham, Professor of Economics, Tony Yates has contributed his thoughts on Jeremy Corbyn’s “People’s QE” and warns “it would be a disaster.”
Labour leadership contender Jeremy Corbyn has created quite the media storm, with his proposed scheme to print money to fund a national investment bank, which would subsequently support infrastructure development projects.
Tony Yates has contributed has expertise to news stories in the Financial Times and The Telegraph stating that: “It would be a disaster. What is so frustrating about it is that it’s not necessary to achieve a surge in spending on public infrastructure – that could be done with a looser fiscal policy.”
As a former Bank economist he referred to previous examples and said: “That’s what Zimbabwe was doing, where they ended up paying all their bills by printing new money.” He continued: “Once you’ve done that successfully, what political barriers are there to doing this again and again?”
To keep up to date with Tony Yates’ views and insights on economics you can follow him on Twitter @t0nyyates or visit his blog longandvariable where his latest entry is titled:Tsipras being decisive, not irresponsible?
Full news stories:
Financial Times: Advocate of Corbyn’s key economic policy predicts new crisis