Lower Oil Prices Might Expose Unconditional QE

It will be interesting to see if the increase in spending power brought about by the fall in energy prices is a more effective tool in heating up the economy than trickle down QE policy.

Both will (or are meant to) increase our spare cash.

If the effect of oil prices has a positive and significant effect on demand and then we might need to give the implementors of QE what my daughter would call “a Paddington hard stare”.

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