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Gilt trip - how the government raises cash
This brief “Industry Speak Explainer” from the Guardian provides a vsimple explanation of how the government borrows money by selling gilts. It explains how the Bank of England’s policy of quantitative easing, which involves buying up to £75bn of gilts in an attempt to drive up their price and push down the yield, is an attempt to avoid crowding out by persuading investors to sell gilts back to the Bank and spend the cash on other assets instead, helping to drive up their prices, reduce the cost of borrowing, and stoke new demand across the economy.
