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Government 'needs to consider' alternatives to QE

Wednesday 16 November 2011 by Gina Le Prevost

People in banking jobs may be interesting in the opinion of one analyst who has suggested the government should be looking for other methods of stimulating the economy rather than quantitative easing (QE).

Justin Cooke, chair of the British Interactive Media Association, said the prospect of a further round of QE would be "a short-term fix which ultimately dilutes the value of sterling."

Instead, he suggested the coalition could be taking measures to promote investment in the country and increase international trade as steps towards boosting the recovery.

He also stated encouraging banks to lend to small and medium enterprises could be another way to increase the nation's growth, which has slowed recently with gross domestic product figures for the third quarter showing an increase of 0.8 per cent, down from 1.2 per cent in the second quarter.

Mr Cooke did however express optimism for the future, noting businesses were becoming more confident and had "responded brilliantly" to current market conditions.