Uk M4 Is Growing Again

[easy2012]

M4 excluding intermediate OFCs rose by £3.5 billion in 2011 Q1, after increasing by £12.9 billion in 2010 Q4. Quarterly annualised growth fell to 0.9% from 3.3%. M4 lending excluding intermediate OFCs rose by £18.5 billion in 2011 Q1, compared to a £1.7 billion increase in 2010 Q4. Quarterly annualised growth was 3.9%, compared to 0.4% in 2010 Q4

The household sector’s holdings of M4 rose by £7.2 billion in 2011 Q1. Quarterly annualised growth increased to 2.8% from 2.0% in 2010 Q4. M4 lending (excluding the effects of securitisations etc) to the household sector rose by £2.8 billion in 2011 Q1. Quarterly annualised growth increased to 1.0% from 0.6% in 2010 Q4.

Private non-financial corporations’ (PNFCs’) holdings of M4 rose by £1.1 billion in 2011 Q1; the quarterly annualised growth increased to 1.9% from -3.9% in 2010 Q4. M4 lending (excluding the effects of securitisations etc) to PNFCs decreased by £1.3 billion in 2011 Q1, after a fall of £0.6 billion in 2010 Q4 and quarterly annualised growth remained negative

at -1.2% (-0.5% in 2010 Q4).

Holdings of M4 by non-intermediate other financial corporations (NIOFCs) fell by £4.9 billion in 2011 Q1 and M4 lending (excluding the effects of securitisations etc) to NIOFCs increased by £17.0 billion in 2011 Q1.

[porca misèria]

Push hard enough on a piece of string, and it really works ...

[onesmallstep]

are these figures corrected for inflation or nominal values.

no more qe needed

[Sour Mash]

If you read the BoE website they say they have to increase the money supply to keep up with price inflation.

Priceless ... did they really say this? I've sometimes jokily said that they'd use higher prices as an excuse to print more money but I never expected them to actually trot out a line like that.

Just how dumb do they think the general public is? Actually, they may have a point

[easy2012]

are these figures corrected for inflation or nominal values.

no more qe needed

These are always absolutely (i.e. nominal value).

As for the inflation argument, it is the Amount of money x velocity of money = price of goods x quantity of goods/services (i.e. GDP).

So, M4 should only goes up if the price of goods x quantity of goods/services are increasing. As quantity is obviously not increasing,

then increase of M4 means the price of goods and services will increase..

Some deflationist decide to ignore the CPI/RPI measurement and use the M4 changes definition instead. In this case, M4 up, then

it is monetary inflation. Price inflation is beyond argument (is up and up).

Both price and M4 measurements are now positive and of course MPC will find other excuses..

[easy2012]

So as money growth is below rpi, I think they will claim we're experiencing real deflation.

I don't think one can use RPI to deflate M4 figures. else back in 2008, prices was falling slower than M4 then we would have a 'real' inflation ??

Of course not.

Of course, it is that 150bn deficit that is really the elephant in the room...

And of course, when Mervy said there was too much debt, he was also saying there was too much saving (NOT) as each unit of debt has a corresponding unit of saving.

Edited May 7, 2011 by easybetman

[libspero]

Mind if I add some charts to this fine thread..

(Courtesy BoE) Linky

Edited May 7, 2011 by libspero

[onesmallstep]

I must say I love charts and those are particularly magnificent,

You see a journo or politician can put an emphasis on something to make it sound how they wish, but with a chart you can see what is really going on.

If only I could embed pictures

[onesmallstep]

I must say I love charts and those are particularly magnificent,

You see a journo or politician can put an emphasis on something to make it sound how they wish, but with a chart you can see what is really going on.

If only I could embed pictures

Uploaded with ImageShack.us

oh bugger I can now I'm going to go way too far

Edited May 7, 2011 by onesmallstep