rba and quantitative easing

In today's Fin Review Glenn Mumford (p 23) puts forward a case for the RBA and treasury to follow the lead of the UK and US in quantitative easing. Indeed, he suggests that given the masses of bonds being sold over the next couple of years (Australia will be one small fish in a big bond pond) and the shrinking amount of buyers (China and Japan are cutting back) that QE may be the best way to go. (Some here would say that it may be the only way to go).

So the inflationary argument gathers more support. Yet I am still in denial.

- pug