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Brown to meet US federal bank expert on printing more money
Joe Murphy, Political Editor08.01.09
GORDON Brown will meet America's Federal Reserve chief next week amid speculation he may print more money to counter the recession in Britain.
Ben Bernanke is an authority on using money supply expansion to stimulate growth when interest rates fall close to zero.
The pair will meet on Tuesday, with Mr Brown flying to Berlin later in the week to discuss the economic crisis with Angela Merkel.
Chancellor Alistair Darling confirmed the Government is looking at "a range of new measures" to boost the economy and did not rule out copying the American ideas.
"There's a debate to be had about what you do to support the economy as interest rates approach zero, as they are in the United States," he said. "But for us that is an entirely hypothetical debate." Mr Darling added: "Nobody is talking about printing money."
The Standard revealed yesterday that expanding the money supply, now known as "quantitative easing" is being considered as a future option by the Treasury and the Bank of England.
Economists have described it as a risky idea as it could spark inflation. Ross Walker, an economist with RBS, said the policy was now expected. "Radical monetary policy action (quantitative easing as bank rate approaches zero), fiscal loosening and sterling's depreciation will eventually nurture recovery," he said.
Mr Brown convened his Cabinet in Liverpool today in an attempt to show the Government actively tackling the recession.
He denied the regional away day was a gimmick, saying: "This is not just an event for the cameras. We will listen to what you have to say and respond."
Communities Secretary Hazel Blears acknowledged that people were cynical about the event until they took part. "When people get face-to-face with ministers and have real discussions, they really do value them," she said.
Lord Mandelson used the event to announce £35million of regional aid to business start ups.
But the flurry of initiatives came under fire from the executive chairman of Marks & Spencer, Sir Stuart Rose, who said ministers should be more consistent.
"[Government] needs to say 'things will get better, this is what we are doing' not stop-start or come out with a raft of new measures."
Reader views (13)
The UK is now doomed.
- Gianni, Italy, Milan
The signs are pretty obvious. The random and inappropriate grins have turned into a lottery winner's joyous smile even as the economy collapses. From all appearances the first recipient of the printed money will be the man himself. The single consolation in this slide to disaster is that the public service pensions will be paid in a grotesquely devalued currency. Buy a wheelbarrow (made in China) before they become too expensive.
- Tim Holden, exeter, uk
If we all printed our own money in Britain our presses would have to roll day and night to provide enough to pay foreigners to do it for us. Not to mention our food, clothing and accommodation.
Given that there would be fewer votes for Gordon and New Labour if everyone here had to earn their keep.
- Peter Seekings-Foster, Mildenhall, Suffolk.
Does Crash Gordon think this is funny??
- Jacqueline, Hampstead, London
Yet again our "Leader" cannot make a decision on his own he has to ask an outside party-At least then he can stamp the blame when yet again his policy collapses-Pity he doesn't get a sick note or maybe we could certify him?
- Harvey Lawrence, London UK
The surest way to make our money worthless and deliver the final blow to this battered economy and the poor savers who didn't see it coming.
- Enuff, london
Much better if he met representatives from Waddingtons the Monopoly money producers. By the way, why is he always picutred laughing in that manic sort of way. I'm not sure he really appreciates (or cares) what a catastophic mess he's actually created
- Malcolm, London
He's like a mindless idiot swimming around in a complete vacuum clearly not knowing what to do or where to go and not understanding the mess he has got us all into.
PLEASE RESIGN GORDON BROWN.....CALL A GENERAL ELECTION!
YOU'RE JUST NOT UP TO IT.
God help us all!
- R King, UK
Spot on Stuart, couldn't have put it better myself.
- Chris, London
A U.S Fed Bank expert?.... thats interesting, it sounds like an oxymoron. And talking of moron's even my cat knows the quickest way to destroy any commodity, is for a surplus of it to appear, either naturally as in over production of Copper or Lead or artificially when politicians get involved. When supply drowns demand only one thing can happen... a price collapse. It has always, always been that way. So printing money (costs only 20p to make a £50 note) will double, say the number of £20 notes in circulation so without any real asset backing, surely this means that a £20 note will only be worth £10 next year ?
- Bondy, london
Looks like our wonderful bottler of a Prime Minister has found another way of ducking Prime Ministers Questions next Wednesday. Macavity the cat does his disappearing act yet again.
Not only did he duck the last PMQs of last year, but Brown's tenure as Chancellor was marked by his conspicuous absence whenever a ministerial problem cropped up, such as tax credits.
- Bingham Macnamara, lymington, hampshire
I lay odds unsupported extra money has already been printed.
Now he wants to borrow container shiploads. BIG, BIG mistake.
Live within your means, or cut back, lessens from thousands of years of experience of mankind, but not convenient for our 'prudent; (HA HA) PM (persistently mendaciuos).
- Hugh, Middx
Sorry I thought he was meeting an Xerox executive to help him print more money. Of course it shows incredible dilligence on Browns behalf to be taking advice from the US on banking matters, after all they got it so right in the first place!
- Stuart, london
