FactSet speaks to FTSE on the state of the U.K. market

In FactSet's most recent podcast episode, we begin a three-part conversation with Andy Harvell of FTSE Group. Andy kicked off the series with a discussion of how the recovery has begun to develop in the U.K. We discuss steps taken by the central bank of the U.K. in order to alleviate the credit crunch and take a closer look at the nationalization of several U.K. banks.

As part of the conversation, Andy Harvell discusses the move by the Bank of England to begin quantitative easing, including why this move was seen as necessary in the current crisis.

"In previous times the way to get an economy moving was to cut interest rates," Andy says, but this time when rates were cut it didn't have much effect,

"People wanted money in their pockets rather than money off goods....So the Bank of England decided to pump money directly into the system by the process known as quantitative easing and the bank expanded the amount of money in the system by about £125 billion. Although this wasn't actually physically printing money, an economist would argue that it's the same principle, as it's a deliberate expansion of the central bank's balance sheet and the monetary base."

Subscribe to FactSet's podcast to hear more of what Andy has to say about the turnaround in the banking sector in the U.K., which has made a significant rebound in 2009. You can also listen to the podcast on the web or read the transcript.

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