The Way to Weimar

[macgamer]

So today the Bank of England has bought gilts from banks thereby employing quantitative easing.

Are there any economists amongst us who can enlighten us as to the wisdom or foolishness of this strategy?

[jollytiddlywink]

'The Way to Weimar?' Really? Anyone with any historical knowledge would think you are trying to set this discussion off on a pre-determined path of doom, gloom and dictatorship. Fortunately Britain in 2009 does not bear much resemblance to Germany of 1920-33, except for being in the same continent, having the French as neighbours, and having some economic problems. Beyond that the similarities stop. No Austrians getting into power here...
So until an economist comes to enlighten us, I would suggest you read up what the BBC has to say on the subject, they have some very illuminating articles, which I found perfectly accessible to the layman.

[Metalhead]

*ahem*

The way to Weimar was the First World War, which ended in Germany with the declaration of the German Republic (twice) and after that the establishment of the Weimar Republic. Also may I point out that the Weimar Republic actually survived the major economic crisis of 1923 and the crisis of the late 1920s/early 1930s was only one of the factors which led to its downfall.

[jollytiddlywink]

*ahem*

The way to Weimar was the First World War, which ended in Germany with the declaration of the German Republic (twice) and after that the establishment of the Weimar Republic. Also may I point out that the Weimar Republic actually survived the major economic crisis of 1923 and the crisis of the late 1920s/early 1930s was only one of the factors which led to its downfall.

I am indeed aware of that, but was pointing out that Weimar doesn't so much get credit for following after the Kaiser and the Great War, but for preceding Hitler, and for being unable to satisfactorily deal with the economic tumult of the period, even if it did, as you correctly point out, survive the crisis of the early 20s. The fact that there was frequently armed political violence in the streets (Hitler's attempted putsch in Munich being just one example) is also an unfavourable aspect of the Weimar years. But either way, I think that calling the thread 'the Way to Weimar' is to fill discussion with heavy over-tones of mass slaughter in the trenches, a decade of economic and governmental tumult, succumbing to eventual dictatorship, world war and mass slaughter of innocents. Regardless of whether you take the start or the end of the Weimar period, it's hardly a 'neutral' background for discussion... so much so that nobody has discussed the OP's actual question about economics!