Interesting article which reflects the comments of another Economist at a lunch I attended in April who said he and other prominent economists could not agree how to withdraw QE without damage to the economy. It has to happen so start small and then go slowly and steadily would be my advice!
The global financial system sometimes feels like a vast, ramshackle and not terribly well-behaved nuclear power station. It is bewilderingly complicated. No single person could possibly get to grips with all its pipes, valves, reactors and circuitry. And it is unstable at heart — as we learnt seven years ago when it came close to meltdown. It does produce one heck of a lot of electricity but is not trusted. The staff have been caught meddling with the dials. The Greek-made pipes are making worrying gurgling noises. Occasional bangs — rogue traders, IT failures and cheating scandals — are reminders that the machinery is all too flawed. And the entire apparatus has been converted to use a whizzy new fuel called QE, which seems to work but is entirely experimental.