QE back on the agenda – £ drops to record low

The first bout of quantitative easing having achieved nothing useful, there is now discussion about restarting this policy. One effect seems obvious – the £ has dropped from about SEK 14 in 2006 to SEK 11.7 in June to SEK 10.7 today, a record low.

Wisdom has it that this is good for exports but there is no sign of any more British goods in the shops in Sweden. There are a few newspaper articles promoting the UK as a travel destination but that’s about it.

If I were you I wouldn’t start from here

One effect of the loose monetary policy has been to keep UK land prices at an excessively high level, and regular visitors to this site will know what that does. We suggest that the authorities are getting their policies completely wrong, but then again, our advice would be not to start from here.