Monday, Feb 19, 2007

Supply of Sterling Rose 12% in Dec

Money Week: Mainstream Finance Gets It Wrong On Gold

Anyone got a spare barrow for that loaf of bread!

Posted by nearly30 @ 12:35 AM (166 views) Add Comment

4 Comments

1. Nearly30 said...

Note - 13/02/07 from BBC:

Evan Davis,
BBC News economics editor

"Underpinning all this have been conditions of easy money.

The data for the latest three months shows money supply has been growing at an annual equivalent rate of 9.4% (That is slower than the 15% growth rates seen late last year, but is still quite a pace.) This month's fall after last month's rise begs the question - do we overreact to monthly data?

Somehow, this does not feel like an economy that is struggling, or that is flat on its back."

Monday, February 19, 2007 12:35AM Report Comment
 

2. nearly30 said...

Note - 13/02/07 from BBC:

Evan Davis,
BBC News economics editor

"Underpinning all this have been conditions of easy money.

The data for the latest three months shows money supply has been growing at an annual equivalent rate of 9.4% (That is slower than the 15% growth rates seen late last year, but is still quite a pace.) This month's fall after last month's rise begs the question - do we overreact to monthly data?

Somehow, this does not feel like an economy that is struggling, or that is flat on its back."

Monday, February 19, 2007 12:35AM Report Comment
 

3. george monsoon said...

if the cash has increased by 12% should this not de-value the pound by the same amount? or at the very least, increase the inflationary figures?

Monday, February 19, 2007 01:25PM Report Comment
 

4. harold said...

george monsoon, yep - however, the effect may be delayed, and to some extent is depends on the growth in goods and services. But, yes, on the whole the BoE have good cause to worried about inflation and the strength of sterling in the not-too-distant future.

Monday, February 19, 2007 05:12PM Report Comment
 

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