Zombification of the U.K. Revisited

The problem is that asset values go away, but the debts don’t.

You can force prices to adjust to economically sustainable levels, make agents take their losses and cause some deep but short-lived pain in the economy. Or you can create a zombie that lurches along for years, or even decades, with the hope that somehow, along the way, you can generate enough inflation to transfer wealth from the prudent to the feckless and restart things.

That is the BOE’s agenda, whatever fairy stories it happens to tell.