Inflating out of trouble- unprecedented move by the Bank of England

September 18th, 2007

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As we have already heard by now, the Bank of England had pleged to ?guarantee all deposits? in the failed Northern Rock bank (see Northern Rock deposits guaranteed). That is the glorified way of saying that they will print as much money as possible to ensure that the bank will remain solvent.

That’s the wonder of fiat money isn’t it?