Central banks will be able to unwind quantitative easing with little impact on the real economy, a study by the Bank of England suggests.
Two senior advisers have countered economists’ fears of a surge in inflation and a spike in borrowing costs once the recovery is firmly established. They argue that central banks should be able to end their stimulus without significant disruption.
Since 2008, the world’s central banks have added trillions of dollars to their balance sheets through government bond purchases as they pumped money into their economies to stave off a potential second Great Depression.
The Bank of