Mervyn King is wrong - QE is bad for pensioners

The governor of the Bank of England thinks quantitative easing is having no detrimental effects on pensions. But he's wrong, says Phil Oakley. It is hammering pensioners' incomes.

The Bank of England has created £325bn out of fresh air quantitative easing (QE), as economists like to call it to try to bolster the British economy in the wake of the credit crunch.

Was it the right thing to do? That depends on who you talk to. Supporters say without it, the economy would have collapsed into a depression. Detractors point to the threat of inflation, and the negative impact on final salary pension funds.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.