uk increase pump prime

Discussion in 'Economics' started by morganist, Aug 6, 2009.

  1. morganist

    morganist Guest

    the uk increase money supply by fifty billion to increase consumer consumption.

    http://news.bbc.co.uk/1/hi/business/8187360.stm

    i don't really understand this. is it like saying demand has fallen by ten or twenty percent for this much money to be put in. it seems too much and i don't agree with how they spend it. it doesn't solve the underlying problems in the economy it just prolongs them.