FT reader Eric Keetch achieved financial fame (of sorts) last week, with his whimsical explanation of quantitative easing.
Published in the FT’s letters pages, Keetch used a picturesque European town, a wealthy Russian and a “good time girl”, among other things, to illustrate the (non)money creation and debt retirement involved in the unconventional monetary policy.
Perhaps unsurprisingly, the letter kicked off a debate in the pages of the FT. For instance, the following was sent in from Mr Frank Neale:
Sir, You published (August 12) a zany letter from Eric Keetch offering an alternative view of quantitative easing. His conclusion that everyone’s debts have been settled with no new money introduced is not correct; the hotel is still €100 out of pocket as it has had to pass on the proceeds from the “good time girl” to the Russian guest.
It is a good job Mr Keetch is not the governor of the Bank of England – perhaps he is a magician!
Frank Neale,
IRRfc,
London WC2, UK
Mr Keetch, however, struck back with an example of ‘real magic’, published in the FT on Friday, seemingly conjuring up an extra square unit from a geometric curio. The scan below courtesy of Capital Chronicle. Click to enlarge.
The explanation of the puzzle is published in Monday’s newspaper, and is cleverly provided by reader John Simpson, with some rather droll commentary.
Very amusing, Mr Simpson.