Cat’s Credit Crunching: Has Grexit been averted?
Thoughtful Thanos asks: Has a Grexit been averted? Dear Thanos, When Tsipras caved in to Troika pressures and accepted the implementation of austerity measures, the impression policy makers wanted to create was that a Grexit had been averted. But the reality is a lot more complicated. The Greek state remains broke, and in this the […]
Cat’s Credit Crunching: What is quantitative easing?
Regular Robin asks: What is quantitative easing? Dear Robin, Quantitative easing is an economic policy measure used in recessions. It stems from the belief that the key problem during an economic crisis is lack of money in circulation. For example, when banks refuse to lend money, investors are cautious to buy stocks and bonds. Consumers […]
Cat’s credit crunching: why are house prices so high?
Serious Sherrl asks: Interest rates have been at a record low for many years. But nobody in London can afford to buy even a tiny flat. Why are house prices and rents rocketing in London? What are banks and building societies doing with all that money? Who is benefitting from all this? Dear Sherrl Keeping interest rates low […]