Eventually, this combination of large debt, and high cost of borrowing and capital weakens economic growth and undermines confidence in the economy’s long run potential. Slowly, but inevitably, if the fiscal  BIS Review 22/2010  3  debt goes unaddressed, the currency weakens, as does access to global financial markets. And the cycle worsens, leading ultimately to a financial and economic crisis.
I therefore cast a dissenting vote on the measure and insisted that it was appropriate for the Bank to continue with the guidelines employed at the time of the introduction of QQE. Since then, I have continued to cast a dissenting vote on the current guidelines.