Summary
THE Bank of England's great experiment in 'quantitative easing' - boosting the supply of money in the economy - is now under way with the knock-on effect that savers and pensioners are already feeling the pain as the real value of their investments falls.
An unanticipated consequence of the Bank's plans to buy up to Pounds 150billion of long-term bonds issued by the Government has been to send their price soaring.See the full content of this document
Extract
Will This Prove a Gamble Too Far ; Analysis [Edition 2]
Such bonds are issued by the Government to banks, insurers and pension funds to pay for state borrowing.
They are known as gilt-edged stock, or gilts, because they have an effective guarantee...See the full content of this document
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