Research Director of the Adam Smith Institute, Sam Bowman, took part in the CityAM Forum debate, arguing that QE helped avoid another Great Depression.

Many people, including me, expected QE to cause uncontrollable inflation and end in disaster. How wrong we were.

The US and the UK, which did QE, are growing healthily. The Eurozone, which didn’t, is in ruins.

QE helps to keep nominal spending steady during recessions, allowing the real economy to reallocate resources as normal without risking the sort of deflation that can cause mass unemployment, which Milton Friedman showed was the cause of the Great Depression.

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