I’ve had an interesting exchange of views with Murphy here. Have a look at the comments after his article. The article title is “Increasing the money supply does not create inflation” (Sept 5, 2015).
Ever since people’s QE was first promoted, the central idea has been to print money and spend it mainly in infrastructure. I then pointed out in the comments that that’s not too clever, and that stimulus spending should be widely dispersed, not spent just on one item like infrastructure.
Murphy seems to come round to that view. But rather than admit he’s changed his mind, he claims he has backed that “wide dispersion” element since 2010. Now that’s all very strange because Frances Coppola writing in the Financial Times and the head of the CBI, both writing in 2015 seem to be under the same impression as me, namely that an important element of PQE is that it is concentrated on infrastructure.
So either Coppola, the head of the CBI and me are twits, or Richard Murphy is a liar. Take your pick.