Cobden Centre Founding Fellow Dr. Anthony J. Evans debates QE with Stephanie Flanders.
Indeed Stephanie and I agreed that this is completely unchartered territory (i.e. “The Bank of England doesn’t understand the mechanisms”). The difference is that she seems to think that “doing nothing” is not an option, whilst I (and this part didn’t air) feel that it should. Not necessarily an option that we take, but something to consider deeply. In short, if we have no idea whether the harm of an action outweighs the benefit, it might be wise to do nothing. If we’re stood on the edge of a cliff, we shouldn’t march forward with more conviction and a “vision” about things all working out in the end.