There are, at present, more than 1,500 VCs in circulation, with dozens of new schemes being launched monthly. The total value outstanding has fluctuated sharply, largely because of speculative activity, and most have failed to attract users. Yet authorities need to be aware of the potential risks they pose for the economy. Are VCs the latest incarnation of money?
Though temporary factors distorted the August figure, underlying price pressures have weakened due to subdued demand and significant labour market slack. Near-term price pressures will also remain subdued due to the recent appreciation of the euro exchange rate. While the recovery remains incomplete, it continues to be bolstered globally by substantial support from both fiscal and monetary policy.