MPW Economics Discussion Board

Economics news post for AS and A2 students at MPW Cambridge - please add brief comments to stories you find interesting or relevant. You can: speculate on future trends; link in with other topics or units; interpret/analyse; evaluate (magnitude of change/short term/long term...); offer a personal evaluation (normative statements) but please offer evidence or an explanation. You can also evaluate other students' comments but please be professional in your response.

Thursday, 29 January 2009

Government to print more money in £50bn bid to end lending freeze

5 comments:

Justintime said...: using the mechanics to illustrate my opinion:the whole economy is compared as a falling ball,in order to stop it accelerating downward we need a force upward. That force must be equal or bigger than the weight of the ball.However,we don't know exactelly how big the force we need and the ball will be still falling even if the upward force just a little bit smaller than the downward force.
PS:i have tried my best to simplify the thought.; 30 January 2009 at 23:46
Fabio xu said...: With the borrowing heading to zero, the bank have to find other ways to stimulate the economy.The way the found is to print money,incease the borrowing.

I wonder why there are still 32percent of UK people support Labour group?They lead Britain to a worst recession.; 31 January 2009 at 15:37
Susan said...: Quantitative easing will cause inflation. Hopefully the economy will be under control.; 31 January 2009 at 17:36
qiongke said...: Inject cash into the economy in my point of view is a good idea,cause not only firms need extra cash to operate, but this 50bn will be used to buy private assets to lighten the pressure.; 1 February 2009 at 21:39
chaoya zhuang said...: printing money will cause the inflation, althrough it is deflation, but the they still should make it under the control; 1 February 2009 at 23:31

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