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Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business Providers Profit Bonds & Interest Cash & Tax Tax Wages Purchases Loans Interest Investment Loans Interest Loans Interest Deposits Insurance Normal   Activity
Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business Providers losses Bonds & Interest Cash & Tax Tax Wages Purchases Loans Interest Investment Loans Interest Loans Interest Deposits Insurance Suffering losses
Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business QE Providers losses Bonds & Interest Cash & Tax Tax Wages Purchases Loans Defaults Loans Defaults Loans Defaults Deposits Insurance X X X Breakdown
Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business QE Providers Toxic Assets Bonds & Interest Cash & Tax Tax Wages Purchases Loans Interest Loans Interest Loans Interest Deposits Insurance QE & ZIRP

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QE and ZIRP

  • 1. Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business Providers Profit Bonds & Interest Cash & Tax Tax Wages Purchases Loans Interest Investment Loans Interest Loans Interest Deposits Insurance Normal Activity
  • 2. Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business Providers losses Bonds & Interest Cash & Tax Tax Wages Purchases Loans Interest Investment Loans Interest Loans Interest Deposits Insurance Suffering losses
  • 3. Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business QE Providers losses Bonds & Interest Cash & Tax Tax Wages Purchases Loans Defaults Loans Defaults Loans Defaults Deposits Insurance X X X Breakdown
  • 4. Withdrawals Bank of England Banks UK Treasury Shadow Banking Consumers Business QE Providers Toxic Assets Bonds & Interest Cash & Tax Tax Wages Purchases Loans Interest Loans Interest Loans Interest Deposits Insurance QE & ZIRP