Thursday 20th November 2014
As shown below, between 2000 and 2008, the amount of money – and debt – in the UK economy doubled as a result of creation by bank lending. This created the debt-fuelled boom that ultimately led to the financial crisis. money creation by bank lending. This created the debt-fuelled boom that ultimately led to the financial crisis.
From 2011-2014 just 8% of new loans were made to businesses. The majority of new loans are directed to financial markets and mortgage lending11. This may explain why our economy is skewed so significantly towards housing and financial services.
From 2011-2014 just 8% of new loans were made to businesses. The majority of new loans are directed to financial markets and mortgage lending11. This may explain why our economy is skewed so significantly towards housing and financial services.