Getting the Measure of Money
A Critical Assessment of UK Monetary Indicators
1st Edition
Published on 6. December 2018
206 pages
978-0-255-36768-4 (ISBN)
Description
How much money is circulating in the United Kingdom? The question sounds simple. In fact, it is notoriously difficult to answer, because what counts as money is not a straightforward matter. A variety of measures have been advanced, and they tell different stories about the changing supply of money in an economy. These differences are of more than merely academic interest, because measures of the money supply are inputs to the decisions of central banks. Wrong answers can lead to wrong actions, with potentially devastating economic effects. This book examines the measure of money and, in that light, the actions of the Bank of England in in the lead up to the 2008 financial crisis and its aftermath. It is essential reading for anyone interested in money, measures of its quantity, and the relationship between the money supply and the economic cycle.
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Person
Anthony J. Evans is Professor of Economics at ESCP Europe Business School. He has published in a range of academic and trade journals and is the author of Markets for Managers (Wiley, 2014). His work has been covered by most broadsheet newspapers, and he has appeared on Newsnight and the BBC World Service. He is part of the MOC Affiliate Faculty for the Institute for Strategy and Competitiveness at Harvard Business School, and is a member of the Institute of Economic Affairs' Shadow Monetary Policy Committee. He is a UEFA qualified soccer coach and lives in Hertfordshire with his wife and two children.
Content
- Intro
- Table?1 Notes and Coin breakdown
- Table?2 MA data series and backdating methods
- Table?3 CPI vs PPI (input)
- Table?4 Impact summary
- Figure?1 M4 and M4ex, 1998-2009 (year-on-year % change)
- Figure?2 True Money Supply
- Figure?3 MA stock, 1990-2016 (£million)
- Figure?4 MA growth, 1991-2016 (year-on-year % change)
- Figure?5 Monetary aggregates, September 2014 (£million)
- Figure?6 Monetary aggregates, 2004-16 (£million)
- Figure?7 M3 and MA, 2004-16 (year-on-year growth rates)
- Figure?8 Divisia money, 2000-2016 (year-on-year % growth)
- Figure?9 Broad money velocity, 2007-10 (% change)
- Figure?10 Policy uncertainty
- Figure?11 Private investment, 2007-16 (year-on-year % growth)
- Figure?12 Inflation and price level (under inflation expectations)
- Figure?13 August 2006 fan chart
- Figure?14 August 2008 fan chart
- Figure?15 RPIX and CPI, 1997-2009
- Figure?16 CPI and PPI, May 1997-Dec 2009 (monthly data, % change from previous year).
- Figure?17 Actual and multi-factor productivity norm CPI growth, 1997-2014 (annual data, % change from previous year)
- Figure?18 Actual and productivity norm CPI level, 1997-2016 (quarterly data, 1997 = 100)
- Figure?19 Actual and productivity norm CPI growth, 1997-2016 (quarterly data, % change from previous year)
- Figure?20 Multi-factor productivity, 1997-2014
- Figure?21 Structure of production
- Figure?22 Structure of production (GDP)
- Figure?23 Structure of production (GO)
- Figure?24 GO vs NGDP, 1997-2014 (£million)
- Figure?25 GO to NGDP ratio, 1997-2014
- Figure?26 GO and NGDP growth, 1998-2014
- Figure?27 UK payments, 1990-2013 (2006 = 100)
- Figure?28 UK payments growth (% change on previous year)
- The author
- Preface
- Acknowledgements
- Summary
- Tables and figures
- 1 Introduction
- 2 M: The importance of alternative monetary aggregates
- Summary of key points
- Introduction
- Can money be measured?
- Austrian definitions of the money supply
- The Goldilocks measure
- Divisia money
- Conclusion
- 3 V: Velocity shocks, regime uncertainty and the central bank
- Summary of key points
- The demand for money
- Supplier-induced demand and central banks
- Regime uncertainty and big players
- Conclusion
- 4 P: The hidden inflation of the great moderation
- Summary of key points
- Introduction
- Inflation vs price-level targets
- Fan charts
- Price indices
- Productivity norm
- Conclusion
- 5 Y: GDP, GO and the structure of production
- Summary of key points
- Introduction
- National income accounting
- Beyond GDP
- Gross production and capital consumption
- Evidence for the UK economy
- Conclusion
- 6 Conclusion
- The dynamic process of economic crises
- Policy conclusions
- References
- About the IEA
- Blank Page
