RE: City giants call for cuts to red tape and taxes to boost Britain's financial sector after Brexit21 Feb 2021 11:54
Wids,
Three months back you mentioned the Cantillon effect to the forum , now Zirp is doing likewise .
"An 18th century French banker and philosopher named Richard Cantillon noticed an early version of this phenomenon in a book he wrote called ‘An Essay on Economic Theory.’ His basic theory was that who benefits when the state prints a bunch of money is based on the institutional setup of that state. In the 18th century, this meant that the closer you were to the king and the wealthy, the more you benefitted, and the further away you were, the more you were harmed. Money, in other words, is not neutral. This general observation, that money printing has distributional consequences that operate through the price system, is known as the “Cantillon Effect.”"
It surely distorts free market forces and makes a mockery of QE to infinity , whereby wealthy get wealthier and poorer 'get the crumbs ' . Makes a mockery of our system .
TFE ,
Outstanding link re our Financial hub London .