ZIRP, NIRP and RIRP
Tighter monetary policy is effective in reining in inflation, but looser monetary policy isn't in stoking inflation
Just last week, the Bank of England brought out its monetary policy bazooka. It lowered interest rates; committed itself to lowering them further; resumed quantitative easing (QE); extended it to corporate bonds and got sanction for another £100 billion of QE to be kept in reserve, literally. All this based on a gross domestic product growth forecast that may or may not materialize. Even if it materializes, it may well be due to the inevitable bursting of the asset bubbles that policies such as this fuel. In other words, the policy meant to stave off a growth slowdown might very well be the cause of it, eventually.