Friday, August 14, 2009

Money Supply Data and Graph

Figures for money supply growth have a history of being unreliable. In the early 1980s, the UK's experiment with monetarism was effectively abandoned after the link between money supply growth and inflation was much looser than text models suggested. However, the slow growth of money supply is an indication of the continuing difficulties in bank lending. It is also an indication why the Bank of England have continued with the policy of quantitative easing.

Graph of UK M4 Annual Growth


See also:
For a more dramatic illustration of the state of the economy, GDP statistics show the depth of falling output.


As mentioned in the previous post - outlook for UK economy. GDP growth is expected to reach a record 12 month annual fall of 5.5% this year.

Given the fall in GDP, it is hardly surprising that unemployment is increasing in the UK

Graph of Unemployment Rates

unemployment

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