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Thursday, October 6, 2011

Monetary

News                                                                                                                             
Market Watch | Bank of England launches more QE; ECB on hold
The Bank of England stunned currency markets Thursday by announcing another round of quantitative easing, responding to threats to the U.K. economic recovery and prompting a steep selloff in the British pound.

Blogs                                                                                                                             
Heritage Foundation | Supply and Demand, Part II: The Money Supply
By increasing the money supply, however, there could be risk of stoking inflation, which would increase money demand as people seek to hold more cash in the face of rising prices.