Central banks that adopt a policy of “active” quantitative easing might be better placed to hit their inflation targets, suggests an economist at the Bank of England’s monetary assessment and strategy division.

On the BoE’s staff blog, Richard Harrison writes that, according to his model, allowing central bankers to use QE “unsurprisingly” improves outcomes.

This logic, he notes, seems to imply a permanently larger balance sheet might be desirable: “Such a policy might reduce average long-term