Our new MA measure grew by 5.2% YoY which is a slightly lower growth rate compared to our measure in Jan 2012 of 6.4%.
November 2011 shows MA in continued decline
Our MA calculation for November 2011 dropped by 4.8% YoY, a significant decrease though not as steep as the previous month when it fell by 6.7% YoY.
Notes and Coins increased by 6.7% in November compared to the year before while M4 fell by 2.8%, slightly less than October 2011 when it fell by 2.9%.
October 2011 MA falls abruptly
In October 2011 our MA measure fell by 6.6% compared to the year before as the turmoil in the financial markets from the Euro crisis accelerated. This decrease is more accentuated than the 3.8% fall we calculated for September 2011.
The Notes and Coins figure released by the Bank of England for October 2011 increased by 6.2% compared to the year before while M4 for the same period decreased by 2.9%.
September 2011 MA continues decline
Our September 2011 MA figure accelerated its decline when compared to the readjusted* value for August 2011. In September, MA fell by 3.7% compared to 3.5% the month before. This was somewhat expected given the turmoil in financial markets at the time.
Notes and Coins fell by 5.3% while M4 accelerated its decline from -0.8% in August to -1.6% in September.
*Note: As of November 2011, the Bank of England has readjusted some of the components we included in previous MA computations which naturally resulted in slight changes for some of our calculations.
August 2011 MA falls by 4.3% YoY
August saw another YoY fall in MA, our money supply measure, though again at a decelerating rate compared to the previous two months. The figure was at -4.3% which is less than the -4.7% and -5.1% we saw in July and June respectively. This is an interesting result given that August was the month when the turmoil in the financial markets picked up.
M4, the broad money supply published by the Bank of England also fell but only by 0.6% while N&C grew by 5.6% YoY.
July 2011 MA continues its retreat
Our measure of money supply, MA, continued to contract in July at -4.7%. This is a lower contraction rate than what we measured for May and June. On the other hand, M4 and N&C have accelerated their fall and rise respectively.