UK central bank on money printing spree

Since the global financial crisis struck in 2008, central governments in the developed world chose to bank on quantitative easing to kick start growth. This was in the form of money printing, easing interest rates and the likes. None of these measures helped these economies recover in any meaningful way. But that has not stopped governments from focusing on money printing anyway. The latest to announce another round of stimulus measures is the Bank of England. It plans to pump in another £50 bn into UK's stalled economy. Since the financial crisis hit in 2008, the Bank of England has already bought £325 bn worth of assets in two rounds. Obviously, recession in the country coupled with the deepening Eurozone crisis has taken its toll on the UK economy. Further, elsewhere the European Central Bank (ECB) and the People's Bank of China cut interest rates in response to the global slowdown. This may also have prompted the Bank of England to go in for this move. Th at said, it seems unlikely that this round of money printing will achieve much for the UK economy based on past evidence, except that it will sow the seeds of inflation going forward.