Corbyn's QE for the people jeopardises the Bank of England's independence

The Bank's independence prevents the government being tempted to finance pet projects with money-printing

Jeremy Corbyn's proposed "People's QE" has provoked consternation in the academic and central banking world. Even Mark Carney, governor of the Bank of England, has weighed in, despite the perils of central bankers speaking out on matters of political controversy. PQE has divided opinions in the economic commentariat, but it has united all in getting us extremely hot under the collar.

PQE involves the government instructing the Bank of England to print money (or rather, the modern equivalent, creating electronic reserves) to purchase bonds issued by a Corbyn-established National Investment Bank. This NIB would then use the money to fund public infrastructure projects, or, in fact, whatever the government fancied.

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