Central bankers, as Alan Greenspan learnt to his regret, need to look like they have a plan B.
And so does the Bank of England. Combative MPC member Adam Posen on Tuesday morning seems to be dropping strong hints that something could be cooking over on Threadneedle Street.
From the Daily Mail:
[Posen] has also been working with officials on what he calls a ‘Plan B’ to restore flows of credit if the Bank’s Quantitative Easing strategy falls flat.
What, we wonder, could this be?
Spot of über QE, anyone?
Related links:
The UK has a ‘disturbing parallel’ with Japan, says Posen – FT Alphaville
Posen poses a question and fails to answer it – Money Supply