Simon Jenkins in The Guardian pleads for the government to target newly printed money at consumers in a bid to boost what he calls stagnant demand in the economy; Sam Bowman on the Adam Smith blog argues that there is no demand deficit, just a structural adjustment, and that distorting this natural process will prolong recession. Both agree that apart from the very first wave of QE, giving newly minted money to the banks is a very bad idea; all they do is to hoard it. In an odd sort of way, I agree with both of them.
Increased consumer spending is just consumption - wasted. We should be recovering our money from the banks, not giving them more. And if there's a need to boost 'consumer confidence' in the UK, it's obvious locus is the value of housing. We're peculiar amongst developed nations in the extent to which we rely on equity in our homes. It determines our willingness to borrow and spend, buy furniture, white goods and textiles and even vehicles. So if new money does anything, we should target it at maintaining aggregate property values in line with inflation, whether through bonds or some other mechanism.