easy2012 Posted May 7, 2011 Report Share Posted May 7, 2011 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. Quote Link to post Share on other sites
porca misèria Posted May 7, 2011 Report Share Posted May 7, 2011 Push hard enough on a piece of string, and it really works ... Quote Link to post Share on other sites
onesmallstep Posted May 7, 2011 Report Share Posted May 7, 2011 are these figures corrected for inflation or nominal values. no more qe needed Quote Link to post Share on other sites
Sour Mash Posted May 7, 2011 Report Share Posted May 7, 2011 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 Quote Link to post Share on other sites
easy2012 Posted May 7, 2011 Author Report Share Posted May 7, 2011 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.. Quote Link to post Share on other sites
easy2012 Posted May 7, 2011 Author Report Share Posted May 7, 2011 (edited) 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 Quote Link to post Share on other sites
libspero Posted May 7, 2011 Report Share Posted May 7, 2011 (edited) Mind if I add some charts to this fine thread.. (Courtesy BoE) Linky Edited May 7, 2011 by libspero Quote Link to post Share on other sites
onesmallstep Posted May 7, 2011 Report Share Posted May 7, 2011 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 Quote Link to post Share on other sites
onesmallstep Posted May 7, 2011 Report Share Posted May 7, 2011 (edited) 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 Quote Link to post Share on other sites
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