Biggest monthly drop in M4 broad money since data began in 1982, biggest monthly drop in consumer credit since data began in 1993… (charts via the Bank of England)
It’s curious. This is technically a key yardstick for success in quantitative easing. The Bank is doing quantitative easing, and MPC members have been flagging an extension of QE… but we wonder what Scott Sumner has to say about all this.
Update: PS — we liked this paper by Nick Crafts for Centre Forum on 1930s lessons for monetary policy. Recommends price-level (not inflation) targeting.
Related links:
Squeezed – Economist
Money money money, ex-IOFC - FT Alphaville