Abstract
When the Bank of England introduced quantitative easing (QE) it emphasised effects on money and credit, but much of its empirical research has focused on effects on long‐term interest rates. We use the flow of funds to analyse the implications of QE for broad money, and argue that the financial crisis, fiscal expansion and QE may have constituted major exogenous shocks to money. Regressions in which the growth of nominal spending depends on the growth of nominal money and other variables suggest that money has had a much larger role in the period of the crisis and QE.
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