Quantitative easing is a new name for an old concept – governments taking a role in stimulating flagging or flat-lining economies.
Old fashioned economic stimulus has a new name for the twenty-first century. Concepts such as Keynesianism, state intervention and pump priming have been replaced by quantitative easing. According to Bob McTeer, quantitative easing is “different from traditional monetary policy only in its magnitude and pre-announcement of amount and timing.”
And if we accept quantitative easing is not so very far removed from traditional monetary policy, it merely becomes the latest in a long line of government economic intervention. Nick Clegg told the Liberal Democrat conference in 2012 that Britain should invest its way out of the downturn.