Quantative Easing - Recession 2009

Now policy makers wave their magic wands

Create new money from thin air to purchase bonds.

This pumps sterling in economy direct,

Boosts the money supply and has the desired effect!

Now what to call this scheme had top brains teasing;

The answer? '“ simply '“ "quantitative easing"!

With more cash sloshing about in their accounts,

Banks should start lending in quite large amounts

And increasing activity in this way

Will mean Bank of England's strategy might pay.

It's risky though '“ too little and banks won't lend;

Too much and high inflation will be the trend.

Seventy five billion pounds will expand our base

And stave off staring trouble in the face.

Now if it works, credit growth will soon pick up

And businesses will fill their credit cup,

Which in turn will help to raise up our inflation

To two percent, thus staving off deflation.

While endeavouring to extract us from the murk

Numbers climb weekly, for all those out of work

And so we place our hopes in this "Q.E."

Trusting the Bank of England and the Treasury.

Don Filliston.