The Bank of England today indicated it is ready to print more money to boost the economy after inflation fell below target for the first time in nearly two years.
Deputy governor Charlie Bean and new recruit Adam Posen, who joins the Bank's monetary policy committee in September, said last week's decision not to extend quantitative easing beyond £125 billion did not mean the programme was finished.
"Much too much has been made of this so-called pause," said Posen.
Posen said: "The risks right now are more about deflation than inflation. Once you fall into a deflationary situation, it is very hard to get out.
"Interest rate cuts and quantitative easing combined with the fiscal stimulus is the right way to face this."
The point everyone should remember about 'typing numbers into computers' is that while you destroy debt you also destroy savings. Or in other words you destroy the investment capital that will help us get out of this mess.