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"The preferred (British) measure of broad money growth remains weak.
On the face of it, the M4 measure of broad money (cash and deposits) has been growing fast.
In 1979, Howe had set targets for the growth of "broad money" which included a wide range of bank deposits.
Mr King explained that the bank had decided to expand the programme of asset purchases because more needed to be done to boost the supply of broad money.
They are also needed as insurance against the risk of "sudden flight" by domestic savers.The authors found that a measure of financial depth the ratio of broad money to GDP helped to explain the size of reserves.
America's measure of broad money rose by only 1.6% in the year to April, and fell slightly in the second half of that period.The bears come out of the woodsThe latest market setback has given heart to those bearish commentators who were looking out of touch towards the end of last year.
Similar(45)
The multiplier could yet emerge.There may be tentative signs that the pace of broad-money growth is accelerating.
In America the annualised rate of broad-money growth over the past six months has been just 0.2%.
MONEY AND INTEREST RATES In June, the 12-month rate of broad-money growth rose to 9.4% in Italy and 5.4% in Sweden.
MONEY AND INTEREST RATES Between August and September, Canada's 12-month rate of broad-money growth increased to 5.1%; broad-money growth slowed in Spain and Sweden.
In April France's 12-month rate of broad-money growth was 5.5%.In this section STOCKMARKETS MONEY AND INTEREST RATES TRADE, EXCHANGE RATES AND RESERVES PENSION FUNDS Reprints.
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